Shares of locally based Cedar, which owns 58 centers in Connecticut, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, and Ohio, closed yesterday at $14.92. "We believe that our proposed transaction would provide maximum liquidity and value for Cedar's common shareholders," says Chaim Katzman, Equity One's chairman and CEO, in a statement. "We are very familiar with Cedar's assets and operations and believe they are highly complementary to our own."

The deal would give Equity One centers in Northeastern states where it does not currently have a presence. Right now, the only owns assets it owns in the region are in Massachusetts.

Katzman says Equity One could finance the deal in cash, but could also offer an equity component if that option is preferred by Cedar's board and shareholders. He also urged Cedar management to suspend a public offering of nine million of its shares.