Equity Office Properties Trust has rejected a $41 bn offer from Vornado, saying a $38.3 bn bid by rival Blackstone is less risky for shareholders. Equity Office said a sale to New York-based Vornado would take months to complete while a buyout by Blackstone could be completed within days.

Equity Office Properties Trust has rejected a $41 bn offer from Vornado, saying a $38.3 bn bid by rival Blackstone is less risky for shareholders. Equity Office said a sale to New York-based Vornado would take months to complete while a buyout by Blackstone could be completed within days.

Vornado, the second largest real estate investment trust in the US, raised its offer for Equity Office Properties to about $41 bn in cash and stock on Thursday, beating Blackstone's $38.3 bn bid in what has been said to be the largest real estate buyout ever.

The Vornado offer valued Equity Office's shares at $56 each, topping Blackstone's all-cash bid of $54. Private equity group Blackstone has said in a statement it does not intend to raise its offer, which was accepted on January 2 by Equity Office's board. Shareholders are scheduled to vote on the rival bids on February 5, 2007.

The bidding war for Chicago-based EOP began in January, when Blackstone's offer of $48 a share launched last November, was trumped by Vornado's of $52 a share.