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Archstone OKs Tishman, Lehman $22B Bid

DENVER-The duo from New York City is paying $60.75 per share for the locally based company in what is being called the largest privatization transaction in the multifamily REIT sector.

By Brian K. Miller | Updated on May 29, 2007

(Read more on the multifamily market.)

DENVER-Locally based Archstone-Smith Trust signed away its public existence Tuesday morning, agreeing to be taken private for $22.2 billion by a partnership of Tishman Speyer and Lehman Brothers. The New York City-based duo agreed to pay $60.75 per share in cash–a 22.7% premium over Friday’s share price prior to initial reports–and assume $6.3 billion of existing debt.

Assuming shareholders affirm the unanimous approval by Archstone’s board of directors, the transaction likely will close in the third quarter of this year. Archstone-Smith chairman/CEO R. Scot Sellers has agreed to terms of employment that will keep him in charge of the company. In afternoon trading Tuesday, shares of Archstone-Smith were trading at $60.79, up more than 10% on the day.

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