By Lisa Kerner
Charlotte, N.C., Feb. 6 - Equity Office Properties Trust amended its merger agreement with affiliates of The Blackstone Group after the consideration was increased to $55.50 per share in cash from $54.00 per share in cash, according to a company news release.
In addition, the termination fee payable to Blackstone was increased to $720 million from $500 million.
The proposed transaction, valued at about $39 billion, was unanimously approved by the Equity Office board of trustees.
Blackstone's increased offer follows a revision by Vornado Realty Trust of its part-cash/part-stock offer for Equity Office to a stated value of $56 per share. Vornado had offered to buy up to 55% of Equity Office's common shares for $56 per share in cash and acquire the remaining common shares in exchange for Vornado common shares in a follow-on merger.
In making its decision, the board said it made a financial comparison of the two alternatives, considered the greater risk of non-consummation of the Vornado transaction compared with the Blackstone transaction and noted the fact that Vornado failed to address significant contractual issues identified by the board.
Equity Office's board urged its common shareholders to approve the Blackstone merger and the amended merger agreement at a special meeting on Wednesday. If approved, the transaction would close on or about Friday.
Equity Office is a Chicago real estate investment trust.
Vornado is a real estate investment trust based in New York.
| Acquirer: | The Blackstone Group
|
| Target: | Equity Office Properties Trust
|
| Payment per share: | $55.50
|
| Announcement date: | Feb. 6
|
| Expected closing: | Feb. 9
|
| Stock price for target: | NYSE: EOP; $55.46 on Feb. 5
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