The bid comes only months after a management buyout through aventure called Duelguide took Chelsfield private. The Westfieldproposal values Duelguide at approximately £2.2 billion (A$5.5billion) on an enterprise-value basis.

"The UK shopping center market is under-developed relative tothe United States and Australia, and if the bid is successful itwould increase Westfield's presence in the UK substantially,"Westfield group chairman Frank Lowy says. He added that the bidproposal is a strategic move driven by Westfield's long-term plansfor its UK business. "Westfield recognizes that the bid representsa premium price, but we believe we can create significant valuethrough the application of our management and development expertiseto the Chelsfield properties."

Westfield executives have sought to reassure shareholderconcerns about the raised leverage by identifying a strategy toreduce it to the "mid-forties" over the next 12 to 18 months. Plansare to sell the "non-core assets in Chelsfield, raise funds fromChelsfield and Westfield's current portfolio and ongoingrevaluations," according to a company statement. The acquisition isunlikely to impact on Westfield's next dividend.