Disappointing News from Germany: One IPO Postponed, One Canceled

July 6, 2010 – Monday was not a great day for German investment bankers.  In a surprising move, the German construction company Bilfinger Berger postponed the initial public offering (IPO) of its Australian subsidiary.  Bilfinger Berger had planned to raise between $1 billion and $1.2 billion.

In announcing the postponement, Herbert Bodner, chairman of the executive board of Bilfinger Berger stated, “Bilfinger Berger’s asking price for the Australian business cannot realistically be achieved in light of the current adverse conditions on the stock exchange. “We are not under pressure to sell and have always emphasized that we would not part with our successful Australian business at an undervalued price.”

Also on Monday, Berlin’s largest property developer, Chamartin Meermann Immobilien cancelled its IPO.  It cited lack of interest from investors as the reason.  The company had planned to raise approximately $70 million.  The company said that it might consider listing its shares in the future.  The company indicated in a statement, “Reasons for investor restraint were the imponderables connected with the business of real estate developers.”

Author:  Jeffrey Friedland