"The company intends to vigorously prosecute this declaratoryjudgment lawsuit," Prime Group Realty Trust says in a statement."The company is continuing its ongoing process of exploring thepossible sale of the company." The REIT, which has been for sale inwhole or in part for more than two years, reportedly has otherpotential bidders in line.

Former chairman Michael W. Reschke and E. Barry Mansur made abid to buy Prime Group Realty Trust common stock at $6.70 per sharein late October. The REIT claims the joint venture was unable toget acceptable financing by a November deadline, which Prime/MansurInvestment Partners disputes. Instead, Mansur claims the REIT isattempting to renegotiate the deal structure.

"Prime has wrongfully attempted to terminate our jointlyexecuted merger agreement, which continues to be in effect," saysMansur, controlling shareholder in the joint venture. The jointventure is negotiating with the REIT in an attempt to push the salethrough, Mansur adds.