SHOPPING centre operator Hammerson will not finalise a £3.4bn tie-up with a North-East mall owner until it gets clarity on a rival’s takeover approach.

The company yesterday revealed it will hold off concluding a deal for Intu, which oversees Gateshead’s MetroCentre, until it gets a clearer picture on Klepierre’s buyout intentions.

Bosses say that while Klepierre's position “remains unclear”, the board does “not intend to finalise shareholder documents in relation to the proposed acquisition of Intu”.

Hammerson has branded Klepierre's £4.88bn cash-and-shares offer “wholly inadequate” and “entirely opportunistic”, but the French firm has until April 16 to “put up or shut up” with a formal offer.

Hammerson would prefer to press ahead with an all-share takeover of rival Intu, which would create Britain's largest property company with £21bn worth of assets across Europe.

Intu’s portfolio includes malls across the UK, with the business complementing its MetroCentre site with Newcastle’s Eldon Square.

Equally, Hammerson has several bases, including Birmingham’s Bullring.

Revealing its position in relation to Klepierre, David Atkins, Hammerson chief executive, also shed some light on the firm’s first quarter trading, which showed a combination of severe weather and subdued consumer confidence pushed UK retail sales down two per cent.

Mr Atkins added the group has taken a £3.5m hit to net rental income from the wave of retail restructurings and administrations that have afflicted the sector, including Toys ‘R’ Us and New Look.

Intu previously Intu dubbed itself the “first port of call” for expanding retailers after enjoying strong trading during a difficult economic period.

Officials also praised their international reach, revealing Polish cosmetics retailer Inglot chose its Eldon Square precinct to open its first stand-alone store outside London.