NEW YORK CITY—Following Monday's reports by both theFinancial Times and Bloomberg that American RealtyCapital Properties and NorthStar RealtyFinance are discussing a possible ARCP acquisition ofNorthStar, the two REITs say they're not in discussions. Publishedreports had said a deal was shaping up whereby ARCP would acquireNorthStar for about $20 per share, valuing NorthStar at about $6.5billion.

"While it is our policy not to comment on market rumors, ARCPwould like to address recent speculation over merger discussionswith NorthStar Realty Finance Corp.,” ARCP says in astatement. “ARCP actively evaluates opportunities and is indiscussions with many companies over potential combinations;however, the company is not currently in discussions withNorthStar."

For its part, NorthStar said Tuesday that it is “activelyfocused” on executing its business plan, which includes the spinoffof its asset management business. “While NorthStar may engage indiscussions with interested parties and focuses on maximizingshareholder value, NorthStar is not currently engaged indiscussions with American Realty Capital Properties Inc.”