Colony Capital Said to Near Deal For NorthStar Asset Management

Colony Capital Inc., the private equity firm founded by billionaire Tom Barrack, and NorthStar Realty Finance Corp. are close to agreeing to a takeover of commercial real estate manager NorthStar Asset Management Group Inc., according to people familiar with the matter.

The companies could announce a deal before the end of the week, the people added, asking not to be identified discussing confidential information. Bloomberg reported earlier in May that the companies were in talks on an all-stock merger.

NorthStar Asset Management closed Thursday at $12.31, valuing the company at about $2.3 billion. The asset manager 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 43 percent in the past 12 months.

A representative for NorthStar Asset Management didn’t respond to requests for comment. A Colony Capital representative wasn’t immediately available for comment.

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