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Friday, February 15, 2013

KEYreit board rejects Huntingdon Capital's partial bid, (TSE: HNT.TO)

KEYreit, a real estate investment trust that owns small retail properties across Canada, on Friday rejected an unsolicited partial takeover bid from Huntingdon Capital Corp, saying the proposal was inadequate and coercive.Richmond, British Columbia-based Huntingdon, which already owns 5.4 percent of KEY's issued and outstanding trust units, made its offer in January. It wants to acquire a further 6.6 million, or 45 percent, of KEY's units for C$7 each in cash."The partial offer fails to provide unitholders with an appropriate control premium for the units purchased, and provides no premium for units not purchased," Donald Biback, who heads KEY's board of trustees, said in a statement on Friday.KEY's units have jumped more than 8 percent since the offer was announced, but as the offer is only a partial bid, the units continue to trade at C$6.70, well below the offer price.

Shares of HNT fell by 0.16% or $-0.02/share to $12.42. In the past year, the shares have traded as low as $10.00 and as high as $13.28. On average, 6805 shares of HNT.TO exchange hands on a given day and today's volume is recorded at 7944.