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City urges Hammerson to come up with new growth plan

Landlord Hammerson is behind shopping centres such as the Bullring in Birmingham: Getty
Landlord Hammerson is behind shopping centres such as the Bullring in Birmingham: Getty

Malls giant Hammerson’s management have “bought some time” by aborting a £3.4 billion tie-up with rival Intu but must quickly reveal new plans to boost its share price, the City warned on Thursday

A top 10 shareholder was among a chorus of voices that welcomed the Brent Cross landlord’s move yesterday.

It concluded a tumultuous four weeks that saw the transaction put on ice after French firm Klépierre made two approaches for Hammerson at 615p and 635p. The suitor walked away from talks last week.

The shareholder told the Standard: “Management have bought themselves some time... but we need to see a clear plan on how they intend to close the gap between where we are now and 635p per share.”

One Square Mile source said: “Management have got to do something or they will be hoisted on their own flagpole.”

Jefferies analyst Mike Prew said the board is “facing a Martin Sorrell day of reckoning”. Advertising tycoon Sorrell resigned from WPP at the weekend, after 33 years as chief.

The board will be grilled by investors at its annual meeting next week.

The company yesterday said it is reviewing options to boost value for shareholders, including looking at some property disposals, and will update in the coming months.

The shares dipped 1p to 513.2p.