NEW YORK CITY—Following Monday’s reports by both the Financial Times and Bloomberg that American Realty Capital Properties and NorthStar Realty Finance are discussing a possible ARCP acquisition of NorthStar, the two REITs say they’re not in discussions. Published reports had said a deal was shaping up whereby ARCP would acquire NorthStar for about $20 per share, valuing NorthStar at about $6.5 billion.
“While it is our policy not to comment on market rumors, ARCP would like to address recent speculation over merger discussions with NorthStar Realty Finance Corp.,” ARCP says in a statement. “ARCP actively evaluates opportunities and is in discussions with many companies over potential combinations; however, the company is not currently in discussions with NorthStar.”
For its part, NorthStar said Tuesday that it is “actively focused” on executing its business plan, which includes the spinoff of its asset management business. “While NorthStar may engage in discussions with interested parties and focuses on maximizing shareholder value, NorthStar is not currently engaged in discussions with American Realty Capital Properties Inc.”
Monday’s published reports suggested that ARCP, already the largest net lease REIT with CEO Nicholas Schorsch at the helm, would boost its nontraded REIT fundraising and management business with a NorthStar acquisition. Both Bloomberg and the Financial Times reported that the talks were ongoing and that there was no guarantee that a deal would be reached.