The committee had denied its consent to the tender offer, saying that holders of 7.875% notes due in 2031, 7.5% notes due in 2029 and 7.25% notes due in 2028 would not receive fair compensation for their investment, under the merger agreement. Attorney Andrew Rosenberg from the firm Paul, Weiss, Rifkind, Wharton & Garrison LLP, which represented the 15-member committee, had said that the group would receive $160 million less than agreed.
Rosenberg did not return a call about this story, and EOP officials could not be reached. In its own statement, EOP said that it has amended the consideration for the notes. Consideration for the 7.25% notes and the 7.5% notes will be determined based on an amended Applicable Spread of 25 basis points, and consideration for the 7.875% notes will be determined based on an amended Applicable Spread of 60 basis points. Each case is subject to a minimum price of $1,000 per $1,000 principal amount of notes. Other note consideration remains the same.
Richard D. Kincaid, chief executive officer of EOP, has said that a deal this size is going to incur many reactions. There still has been no confirmation of the rumor that Cerberus Capital Management plans to put up an offer of $38 billion for the company. It's believed the new offer is having an effect on the firm's stock; by 2 p.m., the REIT had hit a high of $49.50, a full dollar per share higher than the Blackstone merger offer of $48.50 per share.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.