In today's AFR MarketWrap a GSJBW analyst was quoted as saying...

In today's AFR MarketWrap a GSJBW analyst was quoted as saying that GMG has the highest EPS growth amongst listed property trusts and this has yet to be reflected in its share price, and that the stock was a strong buy at current prices.

Furthermore it was stated that a takeover of IIF will allow GMG to gain a monopoly over Australia's industrial property sector and that with the non-participation in IIF's capital raising and expected further withdrawal of parent ING in the affairs of its property funds, IIF would become a much easier takeover target for GMG.

Despite GMG's failure to take up its entitlement in IIF's capital raising, something that had not been released to the market until after the article I was reading was published, the article did raise the possibility of IIF offloading its Canadian portfolio (something it wants to do apparently) and that GMG might wait for this to occur before making its move.

The bottom line is just because GMG won't particpate in IIF's capital raising it doesn't mean that the takeover that has been talked about for so long still won't happen, just that it might take a little longer to eventuate.