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Reckson/Mack-Cali Merger Only a Rumor, Says a Source

MELVILLE, NY-Amid the "no-comments," one source who knows of the dealings says things at Reckson are "very quiet," and no merger is imminent. GlobeSt.com's source points to this same rumor's emergence two years ago.

By John Salustri and Amy Vaughn | Updated on April 02, 2001

MELVILLE, NY-There is no comment for the record from either camp on reports of a pending merger between Cranford, NJ-based Mack-Cali Realty Corp. and Reckson Associates, headquartered here. GlobeSt.com has learned that things are “very quiet” at Reckson, and a contact tells us that “at this moment, there is no story. People are making more of this than there really is.”

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.

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