Equity Residential Archstone acquisition deadline extended; price up

By Caroline Salls

Pittsburgh, April 19 - Equity Residential has reached an agreement with affiliates of Bank of America and Barclays plc to extend the outside date for exercising its exclusive right to contract with Bank of America and Barclays to acquire their remaining 26.5% interest in apartment owner, operator and developer Archstone, according to a news release.

Specifically, the outside date was extended to May 21.

As part of the second extension agreement, the minimum price at which the sellers are obligated to contract with Equity Residential to sell this interest in Archstone was increased to $1.5 billion from $1.485 billion.

Before the first extension in February, the original price was $1.325 billion.

If Equity Residential offers a price of $1.5 billion or more and the interest is sold to the other Archstone owner Lehman Brothers Holdings Inc. under its right of first offer, the company will receive a break-up fee of $80 million, the release said.

According to the release, Equity Residential is under no contractual obligation to acquire this interest in Archstone.

Equity Residential is a Chicago-based company focused on the acquisition, development and management of high-quality apartment properties in top U.S. growth markets.

New York-based Lehman Brothers Holdings Inc. was the fourth-largest investment bank in the United States. The company emerged from bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York on March 6.

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