The board of trustees at EOP approved the merger amendment, itsaid in a statement issued Jan. 25. The board is also stillconsidering a rival offer byDove Parent LLC (an entity formed by Vornado Realty Trust, StarwoodCapital Group Global LLC and Walton Street Capital LLC) to acquireEquity Office for $52 per share, and has directed management toengage in discussions with the joint venture. Though EOPshareholders are scheduled to vote Feb. 5 on an acquisition offerfrom Blackstone, the locally based REIT has begun supplyingdiligence information to allow Dove Parent an opportunity topresent a definitive proposal by Jan. 31.

Both deals include taking on about $16 billion in EOP debt.Richard D. Kincaid, chief executive officer of EOP, has said that adeal this size is going to incur many reactions.The Blackstone dealis for cash to be paid for the shares, but the partnership's offeris payable 60% cash and 40% in Vornado shares, and would also offerthe option for EOP shareholders to exchange their units for sharesof Vornado Realty LP. Vornado said in a statement that if the dealclosed, the company would acquire and retain about half of EOP'sassets in the major markets on the coasts, and the other twopartners would acquire the rest of the properties. EOP has a totaloffice portfolio consisting of whole or partial interests in 580buildings comprising 108.6 million sf in 16 states and the Districtof Columbia.

In a previous statement, Vornado said it will fund theacquisition by issuing $10.6 billion in value of its shares andunits and the balance with debt. The company also says it wouldsell or co-venture certain assets as part of this purchase. Thepartnership had included Cerberus Capital Management, but thefinance firm allegedly dropped out of the deal on Jan. 16.