Tuesday, March 26, 2013

Cole Merger Article

Here is a good article from InvestmentNews on Cole Credit Property Trust III's decision to dismiss the American Realty Capital Properties (ARCP) buyout offer and maintain its intention to proceed with the internalization of its sponsor, Cole Holdings.  The article was written before CCPT III's 8-K filing yesterday morning, which provided more detail on why it rejected ARCP's offer.  After reading this article and yesterday's filing, I am still of the opinion that Cole needs to provide more information to investors before they can make an informed decision on the merger.  Wait, I almost forgot, the Cole's proposed merger doesn't require a share holder vote.   That's a shame.

7 comments:

Anonymous said...

http://www.sec.gov/Archives/edgar/data/1425923/000119312513123357/d509732dex991.htm

Anonymous said...

Thanks to anonymous #1 for doing what I was about to. What an asinine waste of a blog post. The four kinds of lies are lies, damned lies, statistics, and ARC's lies, It's absolutely incredible how believable that last type is.

Rational Realist said...

Anon 1, thanks for the link. Anon 2, thinks for your comment, too. Cole's transaction does not seem to generate much ambivalence. People are either for it or against it.

Anonymous said...

I would love for you to do a blog post on Cole's response presentation. I think it has a lot of great information and I agree with most of it, but would love to have someone else educated on this stuff give their opinion as well.

Anonymous said...

looks like the upped their offer to $12.50 per share.

Anonymous said...

$12.50 Cash or $13.59 Stock. They're offering more than what they sold ARCT for to Realty Income and ARCT III to ARCP for. Interesting for ARCT/III shareholders considering they claimed those portfolios were a superior portfolio to CCPT III. As for Cole Shareholders, I'd take this offer and run. Too much uncertainty with what Cole is trying to do and that is not what investors initially invested in the REIT for. As for this back and forth. It's just Schorch and gang's typical business brutality/mentality, trying to tarnish Cole anyway possible and squash another competitor on their way to taking over the world.

Anonymous said...

Last anonymous, the new offer includes the merger, so won't that still impact the ARCP valuation (ie. doesn't remove the uncertainty you state)? Also, $13.59 at .8/share is a $17/share trading price for ARCP. I'm just learning about these types of deals, but I don't know how they can guarantee $13.59 if ARCP is trading in the $14's.