A Chelsfield source confirmed that Australian company Multiplex has made a preliminary offer of euro 732.4 million ($896.7 million) for the equity in the company. The board rejected that but expects another Australian company, Westfield, to extend a higher offer shortly.

Westfield executives declined to comment on their interest in Chelsfield but recently announced plans to increase its exposure in Europe. The Australian property giant is the world's largest owner of shopping centers, with 124 malls in four countries, and is Australia's sixth largest company. It is particularly interested in Merry Hill regional shopping center in Dudley, which has potential for expansion. The acquisition of Chelsfield would be the first stand-alone European acquisition by Westfield.

But one analyst suggested that it would make more sense for Chelsfield to sell just the retail portfolio rather than the whole group. Merry Hill alone is valued at euro 1.3 million ($1.6 billion). "This would attract a wider group of bidders and appeal to British Land and Liberty International," he adds. "Westfield could then find itself fighting it out with one of the two of the UK's big property companies."