Old-timers’ property brawl needs knockout blow

Equity Commonwealth

25/08/2021 16:36

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Lauren Silva Laughlin
    NEW YORK, Aug 25 (Reuters Breakingviews) - Barry
Sternlicht’s Starwood is trading bids with Chicago veteran Sam
Zell for $2 bln U.S. industrial real-estate outfit Monmouth. The
increments are too small to be decisive. The Monmouth board is
sticking with Zell for now, but it's time for a best and final
punch from each.
    Full view will be published shortly.
    Follow @thereallsl https://twitter.com/thereallsl on Twitter
    
    CONTEXT NEWS
    - Monmouth Real Estate Investment on Aug. 23 reiterated its
support for a bid from Sam Zell’s real estate firm Equity
Commonwealth. The deal offers shareholders $19 in cash or 0.713
shares of EQC stock for each Monmouth share, subject to
proration. 
     - Monmouth first entered into an agreement in May to be
bought by Zell’s outfit. The original agreed deal had Monmouth
shareholders receiving 0.67 shares of Equity Commonwealth, worth
about $19.40 per Monmouth share at the time.
    - In July, the company said that it had received an offer of
$19.51 a share, or $18.70 net of the termination fee it would
have to pay EQC and dividend, from a “large private investment
firm primarily focused on global real estate.” A few days later,
the company said it received an amended unsolicited offer, which
increased the offer 18 cents per share.
    - On Aug. 16, the company said that it had revised its deal
with Zell to the current level. Three days later, the company
said it received an unsolicited all-cash offer from Starwood
Real Estate Income Trust, an affiliate of Starwood Capital, for
$19.20 a share, net of the break fee.     

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Original deal announcement     https://mreic.reit/wp-content/uploads/2021/06/Equity-Commonwealth-to-Acquire-Monmouth-Real-Estate-for-3.4-Billion.pdf
 First unsolicited offer    https://mreic.reit/wp-content/uploads/2021/07/Press-Release-July-12-2021.pdf
Amendment to unsolicited offer    https://mreic.reit/wp-content/uploads/2021/07/MREIC-Announces-Receipt-of-Amendment-to-Unsolicited-Acquisition-Proposal-1-1.pdf
Revised Zell offer    https://mreic.reit/wp-content/uploads/2021/08/08-16-21-Merger-Amendment-press-release.pdf
Revised Starwood offer    https://mreic.reit/wp-content/uploads/2021/08/MREIC-Press-Release-08.19.2021.pdf
Board reiteration of Equity Commonwealth offer    https://mreic.reit/wp-content/uploads/2021/08/Final-press-release-08232021.pdf
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Editing by Richard Beales and Marjorie Backman)
 ((For previous columns by the author, Reuters customers can
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 | Lauren.SilvaLaughlin@thomsonreuters.com))