Brass Balls

Love them or hate them, one thing you can't say about the executives at American Realty Capital is that they lack guts and chutzpah.  American Realty Capital Healthcare REIT, which has raised approximately $45 million in investor equity, has made an unsolicited offer for Grubb & Ellis Healthcare REIT II, which has raised approximately $425 million in investor equity.  Grubb & Ellis Healthcare REIT II's board rejected American Realty Capital Healthcare's $9.01 per share offer for all outstanding shares ($6 in cash and $3.01 in American Realty Capital Healthcare shares).  (Where did the $.01 come from?)  I would not be surprised if the American Realty Capital Healthcare's offer becomes a hostile takeover fight.  There are many questions raised by this announcement, deal financing being at the top of the list.  One thing I do know is that this will be fun to watch, kind of like a National Geographic show where a snake eats and digests a much bigger animal.  (The picture below is a python that exploded after trying to eat an alligator twice its size.)