Colony, NorthStar Realty in Talks for NorthStar Asset Management

  • Three companies are discussing an all-stock combination
  • NorthStar Asset Management market value is about $2.3 billion

Colony Capital Inc., the private equity firm founded by billionaire Tom Barrack., and NorthStar Realty Finance Corp. are in exclusive negotiations about a combination with commercial real estate manager NorthStar Asset Management Group Inc.

The companies are discussing an all-stock combination based on historical trading prices, according to a statement from all three firms Friday. There is no guarantee that a deal will get done, they said. Bloomberg reported earlier that the companies are in talks.

NorthStar Asset Management closed Friday at $12.02, valuing the company at about $2.3 billion. NorthStar Realty Finance rose 2.3 percent Friday to close at $13, valuing the company at $2.4 billion.

NorthStar Asset Management was spun off from NorthStar Realty Finance Corp. in 2013 and oversees a real estate portfolio worth close to $40 billion, according to its website.

The company said in January it hired Goldman Sachs Group Inc. to help it explore strategic opportunities. NorthStar Asset Management’s shares have fallen about 44 percent in the past 12 months.

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