Before the foreclosure auction, Vornado sold 50% of the $104-million debt to Montreal-based Cadim Inc. for $50 million. Because Cadim had joined Reschke in an earlier bid to buy Prime Group Realty Trust, the REIT's former boss alleged the once partner had negotiated in bad faith while reneging on its deal, then teamed with Vornado to "steal" the REIT.
Since Cadim's $14.50 per share offer in the summer of 2001, Prime Group Realty Trust shares have fallen to less than $5 per share before a recent uptick.
NOT FOR REPRINT
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
