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Archstone Extends Buy-Out Deadline

DENVER-The owner of some 86,000 apartment units is now looking for the $22-billion deal to close in October rather than August.

By Brian K. Miller | Updated on August 06, 2007

DENVER-Archstone-Smith extended a deadline for the close of its $22-billion buy-out by Tishman Speyer Real Estate and Lehman Brothers. It now expects the merger to close by Oct. 4, instead of by Aug. 31. Archstone-Smith also waived a condition calling for unitholders to release Archstone-Smith and its buyers from previously existing tax protection agreements.

The amendment doesn’t alter the price; the agreement calls for the buyers to pay $60.75 for each outstanding common share, to assume approximately $6.3 billion in existing debt, and to pay off Series I preferred shareholders and unitholders of the operating partnership. When the deal was announced in May, the offer represented a 22.7% premium over Archstone-Smith’s share price. Bank of America is providing some or all of the debt financing associated with the transaction.

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