Equity Office favors Blackstone's less risky transaction over Vornado offer

By Lisa Kerner

Charlotte, N.C., Feb. 2 - Equity Office Properties Trust's board of trustees voted unanimously to reaffirm its recommendation to go with The Blackstone Group's transaction and not the offer presented by Vornado Realty Trust.

The proposed $54 per share all-cash transaction with The Blackstone Group, a New York City private investment firm, could close as early as Feb. 9, according to a company news release.

Vornado's offer of $56 per share in cash and stock would have taken about four to six months to close.

The 1% higher net present value of the Vornado offer would "not adequately compensate Equity Office shareholders for the increased risk" compared to The Blackstone Group transaction, the board said.

A special meeting of shareholders to vote on the merger agreement with affiliates of The Blackstone Group is to be convened on Feb. 5 and immediately adjourned for a voted on Feb. 7.

Equity Office is a Chicago real estate investment trust.

Vornado is a real estate investment trust based in New York City.

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