Merger of Colonial Properties Trust and Mid-America Apartment Communities,
Inc. May Not Be in the Best Interests of Colonial Properties Trust
SAN DIEGO and BIRMINGHAM, Ala., June 3, 2013
SAN DIEGO andBIRMINGHAM, Ala., June 3, 2013 /PRNewswire/ --Shareholder
rights attorneys at Robbins Arroyo LLP are investigating the merger of
Colonial Properties Trust (NYSE: CLP) and Mid-America Apartment Communities,
Inc. (NYSE: MAA). On June 3, 2013, the companies announced the signing of a
definitive merger agreement under which Colonial Properties Trust and MAA will
merge, creating a publicly traded, multifamily REIT.
Robbins Arroyo LLP's investigation focuses on whether the board of directors
at Colonial Properties Trust is undertaking a fair process to obtain maximum
value and adequately compensate its shareholders in the merger.
Is the Merger Best for Colonial Properties Trust and Its Shareholders?
Under the terms of the agreement, each Colonial Properties Trust common share
will be converted into 0.36 of a newly issued MAA common share, valued at
$24.47. As an initial matter, the $24.47 merger consideration is
significantly below the target price of $26.00 set by an analyst at Sandler
O'Neill & Partners, L.P. since April 27, 2012.
Further, on April 25, 2013, Colonial Properties Trust released its financial
results for the first quarter 2013, reflecting an increase in both multifamily
same-property net operating income by 6.8% and multifamily same-property
revenue by 5.2% compared to the first quarter 2012. Further, Colonial
Properties Trust ended the quarter with multifamily same-property physical
occupancy of 96.1%.
In announcing the results, Thomas H. Lowder, Chairman and Chief Executive
Officer, commented, "Simplified and stronger best describe the company and the
progress we have made over the past few years. … Our multifamily development
pipeline is creating significant value for our shareholders, while the
disposition of our commercial assets continues to strengthen our balance sheet
and simplify the company."
Given these facts, the firm is examining Colonial Properties Trust's board of
directors' decision to merge with MAA now rather than allow shareholders to
continue to participate in the company's continued success and future growth
Colonial Properties Trust shareholders have the option to file a class action
lawsuit to secure the best possible price for shareholders and the disclosure
of material information so shareholders can vote on the transaction in an
informed manner. Colonial Properties Trust shareholders interested in
information about their rights and potential remedies can contact Darnell R.
Donahue at (800) 350-6003, firstname.lastname@example.org, or via the shareholder
information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation
and shareholder rights law. The firm represents individual and institutional
investors in shareholder derivative and securities class action lawsuits, and
has helped its clients realize more than $1 billion of value for themselves
and the companies in which they have invested. For more information, please
go to http://www.robbinsarroyo.com.
Press release link:
Attorney Advertising.Past results do not guarantee a similar outcome.
Darnell R. Donahue
Robbins Arroyo LLP
(619) 525-3990 or Toll Free (800) 350-6003
SOURCE Robbins Arroyo LLP
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