By Lisa Kerner
Charlotte, N.C., Jan. 17 - Vornado Realty Trust, along with real estate investment companies Starwood Capital Group and Walton Street Capital LLC, propose to acquire Equity Office Properties Trust for $52 per share, payable 60% in cash and 40% in Vornado shares, according to a Form 8-K filing with the Securities and Exchange Commission.
Equity Office unit holders also will have the option to exchange their units for units of Vornado Realty LP.
Vornado, a New York-based real estate investment trust, expects to fund its share of the acquisition in part by issuing $10.6 billion worth of shares and with debt, after which it would acquire half of Equity Office's assets.
Since a previously announced acquisition of Equity Office by a Blackstone affiliate remains on the table, there can be no assurance the acquisition will close, according to the filing.
Equity Office is a Chicago real estate investment trust.
Acquirer: | Vornado Realty Trust
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Target: | Equity Office Properties Trust
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Payment per share: | $52 per share, 40% in Vornado shares
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Announcement date: | Jan. 17
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Expected closing: | To be determined
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Stock price for target: | NYSE: EOP: $49.85 on Jan. 16
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Stock price for acquirer: | NYSE: VNO: $125.93 on Jan. 16
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