Cole Credit to Review American Realty’s $6.7 Billion Buyout Bid

Cole Credit Property Trust III said it would review a $6.7 billion offer from American Realty (ARCP) Capital Properties Inc. and meet with the company to discuss its proposal.

The Phoenix-based non-traded real estate investment trust still intends to buy the company that sponsors it, Cole Holdings Corp., with plans to go public after the merger, according to a statement today. American Realty yesterday bid $12.50 a share in cash or 0.80 a share of its common stock for each share of Cole Credit, raising an earlier offer.

A special committee of Cole’s board of directors “will carefully review the revised proposal in consultation with its advisers, and pursue the course of action that it believes is in the best interests of CCPT III and its stockholders,” according to the statement.

Cole, the owner of more than 900 mostly single-tenant office, retail and industrial properties, rejected American Realty’s initial offer of $12 a share, saying it undervalued the company.

American Realty revised its bid to include the acquisition of Cole Holdings and take into account property data suggesting increased value for Cole Credit, the New York-based company said yesterday in a letter to Cole Credit’s board. The new bid is valued at about $9.7 billion, including the assumption of debt. Under the stock-payment plan, American Realty guaranteed to pay at least $13.59 for each Cole Credit share.

To contact the reporter on this story: Oshrat Carmiel in New York at ocarmiel1@bloomberg.net

To contact the editor responsible for this story: Kara Wetzel at kwetzel@bloomberg.net

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