Mack CEO Mitchell Hersh was unavailable for comment, but in aprepared statement, he explains that the termination agreementcalls for Prentiss to gain Mack's 270,000-sf Cielo Center in Austinfor $47.1 million. In addition, the locally based REIT hasdeposited $25 million into an escrow account for the "benefit ofPrentiss Properties."Turning a negative into a positive, Hersh saidin the statement that while "We're disappointed that the mergerwill not occur, this settlement allows Mack-Cali and Prentiss torefocus on their core strategies."He may be disappointed, butinvestors might relax a bit. The deal was not a favorite on WallStreet; Mack-Cali share price took a beating and several analystsdowngraded the company's rating. "The deal is dilutive to earningsby at least 10 cents a share and dilutive to net asset value byalmost 10%, which is enormous," Christopher Haley, an analyst withFirst Union Securities, said at the time.But the wisdom of themarriage might be a concern to fewer investors going forward, sinceMack-Cali has also announced this morning that it will repurchaseup to $150 million of its outstanding common stock.
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