Battle over EOP goes down to the wire.Vornado is taking the high-stakes battle over office REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). , Equity Office Properties, down to the wire after a $22.3 billion counter punch lobbed by the Blackstone Group Blackstone Group L.P. (NYSE: BX) is a prominent private equity and investment management firm founded in 1985 by Peter G. Peterson and Stephen A. Schwarzman. The company is based in New York City, in River House on Park Avenue at Fifty-first Street, with offices in Atlanta, set the stage for one of the most fiercely contested take-over bids yet amid the flurry of M&A transactions that have gripped the REIT industry. On Sunday, Institutional Shareholders Services Inc, a proxy adviser, recommended Equity shareholders accept Blackstone's offer to up its initial $20 billion bid by 11% to $54-per share. While noting that Vornado and its partners could well rally for one more offensive before the deadline today (Wednesday), ISS ISS See Institutional Shareholder Services (ISS). said that "the open bidding process has served to maximize the highest value for shareholders" and recommended they accept the new Blackstone offer. "The surprising increase of 11% in its offer price now provides a 20.8% premium to the EOP EOP Educational Opportunity Program (California State University) EOP Executive Office of the President EOP Equity Office Properties Trust (ticker) EOP Emergency Operations Plan EOP Earth Orientation Parameters share price prior to the initial deal announcement. Blackstone's all-cash bid provides speed and certainty to the closing of the transaction," reported ISS. Earlier this month, Vornado formed a partnership with Starwood Capital and Walton Street Walton Street is a street in central Oxford, England, located in the heart of the area known as Jericho. The street runs north from the western end of Beaumont Street where the main entrance of Worcester College is located. for a cash and stock offer amounting to $52-per share following Blackstone's initial announcement that it would buy the REIT at $48.50 last November. EOP's board of trustees board of trustees Politics The posse of thugs who oversee an institution's administration. See Board of directors. has already voted in favor of the revised Blackstone deal citing the price uncertainty surrounding the Vornado package, which includes 40% stock at a $52 stated price, a number that could easily drop if Vornado's share price takes a tumble. Eager to see the deal done, EOP's board is reluctant to entertain a Vornado proposal that wouldn't close for up to four months and still runs the risk of a veto by Vornado shareholders. Blackstone's offer, meanwhile, is scheduled to be voted on February 5 and could close within three days. The fact that an amended $500 million termination fee termination fee The one-time charge for terminating or transferring an individual retirement account. If a financial institution charges a termination fee, the fee must be spelled out in the original agreement that is signed when the account is opened. would not preclude a revised proposal from either Vornado or another potential party, also sits well with the pro-Blackstone board. A special meeting of shareholders to vote on the merger agreement with Blackstone remains scheduled for February 5. The transaction is expected to be complete by February 8, that is unless Vornado has one more move up its sleeve. |
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