Equity Office: Vornado proposes to buy 55% of stock for $56 per share with follow-on merger

By Lisa Kerner

Charlotte, N.C., Feb. 5 - Equity Office Properties Trust confirmed that it received a non-binding proposal letter from Vornado Realty Trust to acquire Equity Office in a tender offer.

The offer is to buy up to 55% of Equity Office's common shares for $56 per share in cash and to acquire the remaining common shares in exchange for Vornado common shares in a follow-on merger, according to a company news release.

Equity Office's board of trustees said it will evaluate Vornado's latest proposal. However, last week the board unanimously reaffirmed its recommendation for The Blackstone Group's proposed $54 all-cash transaction.

A special meeting of shareholders convened on Monday to vote on the merger agreement with affiliates of The Blackstone Group and immediately adjourned until Feb. 7 to give shareholders time to review all materials.

The Blackstone transaction, if approved, would close on or about Feb. 9, according to the release.

Equity Office is a Chicago real estate investment trust.

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

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