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Captec Embroiled in Ugly Fight Over Merger

ANN ARBOR, MI-A stockholder of the net-leased restaurant and retail properties REIT claims the company's CEO and board have acted improperly. He urges stockholders to vote against the merger with Commercial Net Lease Realty.

By Robert Carr | Updated on November 02, 2001

ANN ARBOR, MI-An ugly fight has been gathering over the proposed merger of Captec Net Lease Realty Inc. with Commercial Net Lease Realty Inc. The proposed merger requires the approval of a majority of the outstanding shares of Captec common stock at a special meeting Nov. 19.

Phillip Goldstein, portfolio manager of Opportunity Partners L.P. of New York, which owns more than 369,000 shares in the company, is urging stockholders to vote against the merger, claiming Captec’s CEO is giving out misinformation and pocketing money on thedeal.

Captec, which invests in long-term net-leased restaurant and retail properties, has said that as a result of the merger: CNLR will acquire all of Captec’s outstanding shares for a combination of cash and stock for approximately $124 million, based on a value of $13.05 per share of Captec common stock. The stock portion is expected to be tax-free to Captec stockholders and the transaction is expected to be completed during the fourth quarter.

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