Under the terms of the agreement, SL Green will acquire all of Reckson's common stock and OP units for $31.68 per share in cash and a fixed exchange ratio of 0.1039 shares of SL Green common stock. The transaction consideration represents $43.31 per Reckson common share and OP unit. Completion of the buy ction is not subject to receipt of financing by SL Green and does not require approval by SL Green stockholders. After the dust clears, Reckson stockholders will own approximately 15.2% of SL Green.

SL Green has also entered into related agreements where certain parts of Reckson will be sold to an investment group led by existing Reckson executives and Marathon Asset Management for $2.1 billion. The investor group will acquire all of Reckson's Long Island real estate, the 13-property Eastridge Portfolio in Westchester, 711 Westerchester Ave. in White Plains, 20 office properties and three development parcels in New Jersey and Reckson's interests in its Australian listed property trust. The sale is expected to close simultaneously with the closing of the main agreement. Marathon Asset Management was represented by Paul, Hastings, Janosfsky & Walker LLP.

Speculation had been growing during the last week amid rumors that Reckson was either on the block or taking itself private. An SL Green conference call is yet to take place, after which GlobeSt.com will update.

With the addition of over four million sf in five Manhattan office buildings, "We will enhance the overall quality of our portfolio," said Marc Holliday, CEO of SL Green, in a statement. The package also includes properties in Southern Connecticut and Westchester County."

Scott Rechler, chairman and CEO of Reckson said in a statement, "After eleven exciting years in the public arena, we have decided to recognize the significant value we have created in our portfolio and combine with SL Green to create the premiere office REIT in the metropolitan NY area."

Citigroup served as a financial advisor to Reckson while Goldman Sachs and Greenhill & Co. were financial advisors to the firm's independent directors. The two latter firms also rendered fairness opinions. Wachtell Lipton Rosen and Katz provided legal counsel to Reckson's directors. For SL Green, Merrill Lynch was exclusive financial advisor and Clifford Chance US LLP provided legal counsel.