The source notes that as policy, Reckson won't comment on a rumor, but did point out that this particular rumor has appeared before. "It flared up two years ago," the insider says. Nevertheless, the source would not deny that talks between the two companies have taken place. "Everyone is open to discussion," GlobeSt.com's contact comments. "That doesn't mean it will go anywhere."

However, if the marriage does go somewhere, it will be the first merger attempt Mack-Cali has tried to mount since its failed attempt at joining forces with Prentiss Properties last year. The deal was not a favorite on Wall Street either. Mack-Cali share price took a beating and several analysts downgraded the company's rating. "The deal is dilutive to earnings by at least 10 cents a share and dilutive to net asset value by almost 10%, which is enormous," Christopher Haley, an analyst with First Union Securities, said at the time.

Reckson also ended 2000 with less than a bang, with co-chief executive officer and president Scott Rechler pronouncing the company's subsidiary FrontLine Capital "maxed out." By October 2000 Rechler had announced FrontLine was "going to cease all new investing" and was spinning off one of its assets, HQ Global Workplaces, out as an independent company and laid off 75% of its workforce. HQ, as of Sept. 30, 2000, had $571 million in debt.