A £5 billion bid to buy Bullring co-owner and operator Hammerson has been dropped.
French group Klépierre has made two separate offers for the group, worth £4.88 billion and £5.04 billion respectively, but said today Hammerson's board "did not provide any meaningful engagement" about the proposed deal.
Hammerson has previously said that, on both occasions, the offers did not correctly value the group.
This withdrawal is now expected to pave the way for Hammerson to buy rival Intu, which owns and operates the Merry Hill centre in Dudley, in a £3.4 billion deal to create Britain's biggest property company with £21 billion worth of assets across Europe.
Hammerson, along with Land Securities and Henderson Global Investors, was part of the the original development team of the Bullring which opened in 2003 and it still owns 50 per cent of the city centre mall.
In 2016, it acquired the Grand Central shopping centre above New Street from Birmingham City Council, later selling 50 per cent of its stake to Canadian Pension Plan Investment Board.
Klépierre said in a stock exchange announcement: "The board of Hammerson did not provide any meaningful engagement with respect to the increased proposal and, after careful consideration, Klépierre has concluded that it does not intend to make an offer for Hammerson."
Hammerson said today: "The board welcomes the clarification provided.....(we) continue to believe Klépierre's proposal, which the board carefully considered following a meeting between David Tyler and Jean-Marc Jestin, very significantly undervalued Hammerson."