Vornado, the second-largest real estate investment trust (REIT) in the US, has offered to pay the cash portion of its $23.2 bn (EUR 17.9 bn) bid for its larger peer Equity Office Property (EOP) up front after EOP's board decided to continue to back the takeover bid by private equity group Blackstone. The takeover bid is being touted as the largest ever property deal worldwide.
Vornado, the second-largest real estate investment trust (REIT) in the US, has offered to pay the cash portion of its $23.2 bn (EUR 17.9 bn) bid for its larger peer Equity Office Property (EOP) up front after EOP's board decided to continue to back the takeover bid by private equity group Blackstone. The takeover bid is being touted as the largest ever property deal worldwide.
The bidding war for Chicago-based EOP began in January when Blackstone's offer of $48 a share, or a total of $36 bn, was trumped by Vornado's offer of $52 a share. In January this year, Blackstone raised its offer to $54 per share, forcing Vornado to come back with a bid worth $56 per share. EOP's board rejected Vornado's second offer, claiming Blackstone's bid is less risky for shareholders as it can close much quicker.
In a statement EOP said that 'Equity Office's board of trustees has not changed its recommendation in favour of the approval of the transaction with affiliates of The Blackstone Group by Equity Office's common shareholders.'
EOP's shareholders met on Monday to discuss the Blackstone offer, but the meeting was adjourned to Wednesday, February 7, to give shareholders time to review documents filed with the Securities and Exchange Commission last Friday.
