PHOENIX-Cole Credit Property Trust III Inc. has rejected two unsolicited proposals for acquisition sent by American Realty Capital Properties Inc., based in New York City. According to a release issued by CCPT III, the REIT’s special committee determined that ARCP’s proposals were not in the best interests of the company and its stockholders.
In rejecting ARCP’s two proposals, which were issued March 27 and April 2, CCPT III notes it is continuing plan to complete the acquisition of Cole Holdings, which was announced earlier this year.
Some of the rationales CCPT III’s special committee used for rejecting ARCP’s proposals include:
- ARCP’s proposals undervalue CCPT III on a relative and absolute basis.
- ARCP’s proposals Involve an unsustainable and excessive amount of leverage.
- ARCP’s unfunded proposals lack credibility in that the company proposes to acquire CCPT III with funding it doesn’t have.
- ARCP’s aggressive business plan generates lower quality and less sustainable earnings and cash flows.
- ARCP’s proposals would create an unattractive business model.
- ARCP’s proposals would place the company in the hands of an external manager with a mixed track record.
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