Blackstone's amendedoffer

Blackstone responded this morning to Vornado's announcement bysaying it has submitted its final offer. "We do not believe thatthe true value of Vornado's proposal is anywhere near $56 per shareand Blackstone has no intention of increasing its all cash price,"says a Blackstone spokesman. "The true value of Vornado's offershould reflect a discount for stock, the three to four month timedelay before receiving it and the risk of VNO's share pricedeclining below $115 per share. When combined with the risk to EOPshareholders that VNO shareholders could vote the deal down for anyreason, we strongly believe that our binding agreement with EOP isclearly superior."

Though the EOP board said it would consider Vornado's Jan. 31offer, the EOP board approved Blackstone's amended submittal of $54per share on Jan. 25, along with a $500 million break-up fee if theChicago-based REIT does not agree to the Blackstone acquisition byFeb. 5. In Blackstone's most recent offer in late January, it saidit would pay about $38.3 billion for EOP, in a transaction thatsome investors have favored because it's a cash offer, notincluding stock. In today's statement, Vornado said its offer of$56 per share includes $31 in cash and Vornado shares equal to $25,as long as its stock price remains between $115 to $135 pershare.