INTU shares lost almost a third of their value yesterday after Link Real Estate Investment Trust (Reit) said it would no longer participate in the troubled retail landlord's £1bn emergency cash call.
It emerged on Monday that Link was in talks with Intu, which owns the Trafford Centre, over potentially becoming a "cornerstone" investor in the fundraising. But in an update to the stock exchange yesterday Intu said the Hong Kong-based trust had performed a U-turn and would no longer back the raise.
"Intu remains engaged with shareholders and potential new investors in relation to a proposed equity raise," it said in a statement.
A spokesperson for Link said: "Link remains interested in opportunities in the UK, but our negotiations with Intu have not reached an agreement."
City A.M. understands that Link still sees the UK as a key expansion market, with a more stable currency after the election adding to the attraction.
Intu's shares crashed following the update, and ended the day just over 30 per cent down at 12.12p, wiping £70m off Intu's market cap.
(c) 2020 City A.M., source Newspaper