a buy-outoffer

|

Banc of America Securities LLC, a subsidiary of Bank of AmericaCorp., released the report in response to Post's announcement thatit had received an unsolicited written offer to acquire all of thecompany's outstanding common shares at a price range of $44 to $47per share in cash. The unsolicited proposal would total between$1.9 billion and $2 billion for Post's approximately 43.71 millionoutstanding shares.

|

Cadim is a division of Caisse de depot et placement du Quebec.Williams is controlled by John A. Williams, former chairman and CEOof Post Properties. He founded the company in 1971.

|

"The door has been opened, but we see Williams/Cadim as the mostlikely buyer at this point given Williams' familiarity with theassets and desire to regain control of the portfolio, necessity forhigh equity component due to the more restrictive capital marketsand decelerating core fundamentals which could make achievingpotential IRR hurdles more difficult depending on potentialbidders' growth expectations," the report states.

|

In the Wednesday announcement, Post officials said the companywas considering the offer in conjunction with a decision by itsboard of directors to authorize management to initiate a formalprocess to pursue a possible business combination and seekproposals from potentially interested parties.

|

Williams resigned as chairman of Post Properties on July 1, 2002but stayed on as a director and chairman emeritus with an annualstipend of $150,000. In 2003, he started a drive to remove thecompany's directors, and hinted at possibly taking the companyprivate. The move launched a battle between Williams and thecompany. Both sides cut ties in August 2004 with amultimillion-dollar settlement, which resulted in Williams steppingdown as director, as GlobeSt.com previously reported.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.