US private equity firm Cerberus Capital Management is reportedly preparing to launch a rival bid for Equity Office Properties (EOP), the largest office landlord in the US. The prospect of a bidding war is the latest twist in a saga which began in November when EOP, part of the empire of Chicago-based real estate billionaire Sam Zell, agreed to a takeover bid of more than $36 bn from buy-out firm Blackstone.
US private equity firm Cerberus Capital Management is reportedly preparing to launch a rival bid for Equity Office Properties (EOP), the largest office landlord in the US. The prospect of a bidding war is the latest twist in a saga which began in November when EOP, part of the empire of Chicago-based real estate billionaire Sam Zell, agreed to a takeover bid of more than $36 bn from buy-out firm Blackstone.
That bid, consisting of $19 bn plus assumption of $17 bn in debt, was said at the time to be the largest real estate transaction in history and potentially the largest-ever private equity takeover. Reports on Thursday on the website of the Wall Street Journal and in other media outlets stated that Cerberus, based in New York, was preparing a bid worth more than '$38 bn'.
According to 'people familiar with the matter' Cerberus could mount within days, either on its own or in partnership with other players. Executives at Cerberus were remaining tight-lipped on Thursday but the Financial Times cited a EOP shareholder as saying real estate investors Starwood Capital and Vornado Realty Trust might seek to join the bid.
Cerberus - which shares its name from the fierce three-headed dog of Greek legend - is chaired by former US treasury secretary John Snow. Last year it bought 51% of GMAC, the financial arm of General Motors.
