When a major takeover is announced, the acquirer typically checks two boxes. Will the deal add value to shareholders? And is it accretive, meaning will it boost earnings per share?
H&R REIT is apparently only checking one of the two.
To start the conference call for its multi-billion dollar friendly takeover of Primaris Retail REIT, management said off the top that it believes the deal adds value to both sets of unitholders. Check. But when asked about accretion shortly after, it tried to skirt the issue.