The New York City-based investment firm last raised the stakes on Sunday with the offer to pay more of its total $41-billion offering up front. This apparently pushed Blackstone, which had started the bidding in November with $36 billion and promised to stand firm, to increase its offer to $39 billion, still below Blackstone's offer.
Blackstone had originally offered $48.50 per share for EOP, and then a partnership led by Vornado offered $52 per share, but with conditions. That partnership, Dove Parent LLC, was made up of Vornado, Starwood Capital and Chicago-based Walton Street EOP.
Blackstone countered with $54 per share, and Starwood and Walton Street dropped out at the same time that Vornado made another counteroffer for $56 per share. The EOP board had recommended the all-cash Blackstone offer to its shareholders.
Although the path has been cleared for Blackstone, the formal word from EOP is still to be heard. But the wait shouldn't be long. A shareholder vote is expected before the end of the day. GlobeSt.com will be following the news as it breaks.
The deal includes taking on about $16 billion in EOP debt. EOP has a total office portfolio consisting of whole or partial interests in 580 buildings comprising 108.6 million sf in 16 states and the District of Columbia.
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