<$BlogRSDUrl$>

Thursday, February 01, 2007


Vornado Raises the Stakes in Equity Office Showdown - Mergers, Acquisitions, Venture Capital, Hedge Funds -- DealBook - New York Times 

Vornado Raises the Stakes in Equity Office Showdown - Mergers, Acquisitions, Venture Capital, Hedge Funds -- DealBook - New York Times:

This is turning into a game of high-stakes poker.

"Investors seemed to be expecting an even bigger increase from Vornado. After Thursday’s bid was announced, Equity Office’s stock dipped about 1.4 percent to $54.75 a share. (The New York Times had reported that the bid was likely to be raised to about $57; the Chicago Tribune said the bid was going to about $58.50.)

Vornado said Thursday that it would offer $31 a share in cash and Vornado stock valued at $25 for each share of Equity Office. It also said it was in discussions to sell about $10 billion of Equity Office’s assets to Starwood Capital and Walton Street Capital when the transaction closes and plans to sell an additional $10 billion in assets in the first year after closing.

The chairman of Vornado, Steven Roth, has missed out on the flurry of mergers that have swept through the real estate investment trust industry.

Last fall, Mr. Roth proposed to Samuel Zell, the founder of Equity Office, that they merge their companies. But after a series of missteps, Blackstone swooped in and reached a deal to buy Equity Office for $48.50 a share.

Outraged, Mr. Roth assembled a group of investors to make a counteroffer. Vornado and its partners, the private equity firms Starwood Capital and Walton Street Capital, told Mr. Zell on Jan. 17 that they would top Blackstone’s bid with a cash-and-stock offer of $52 a share."

|




This page is powered by Blogger. Isn't yours?