Mission West owns 7.8 million sf in 110 properties locatedmostly in the Silicon Valley portion of the San Francisco Bay Area.The company says that based on new lease and higher rents that itbelieves revenues and earnings will continue to increase for theremainder of this year and 2008.

The company says the initial buyer "had completed substantiallyall of their due diligence and had agreed to the terms of thedefinitive merger agreement when they were notified by theirlender, one of the top five US banks, that they were withdrawingfrom the market and would not issue their previously agreed uponfinancial commitment… ." With regard to the would-be new buyers,Mission West says it is "continuing to have ongoing discussion withthese companies and they are in the process of doing financial duediligence to determine if they can meet the pricing conditions setforth by Mission West."

InJuly, Mission West announced that an undisclosed realestate private equity firm was in negotiations to take it privatefor $13.55 per share and limited partnership unit, a cash offerthat totaled $1.8 billion. The per-share price was only about $0.15higher than the company's share at the time of the announcement, inpart because of the state of the company's portfolio.