Banc of America Securities LLC, a subsidiary of Bank of America Corp., released the report in response to Post's announcement that it had received an unsolicited written offer to acquire all of the company's outstanding common shares at a price range of $44 to $47 per share in cash. The unsolicited proposal would total between $1.9 billion and $2 billion for Post's approximately 43.71 million outstanding shares.
Cadim is a division of Caisse de depot et placement du Quebec. Williams is controlled by John A. Williams, former chairman and CEO of Post Properties. He founded the company in 1971.
"The door has been opened, but we see Williams/Cadim as the most likely buyer at this point given Williams' familiarity with the assets and desire to regain control of the portfolio, necessity for high equity component due to the more restrictive capital markets and decelerating core fundamentals which could make achieving potential IRR hurdles more difficult depending on potential bidders' growth expectations," the report states.
In the Wednesday announcement, Post officials said the company was considering the offer in conjunction with a decision by its board of directors to authorize management to initiate a formal process to pursue a possible business combination and seek proposals from potentially interested parties.
Williams resigned as chairman of Post Properties on July 1, 2002 but stayed on as a director and chairman emeritus with an annual stipend of $150,000. In 2003, he started a drive to remove the company's directors, and hinted at possibly taking the company private. The move launched a battle between Williams and the company. Both sides cut ties in August 2004 with a multimillion-dollar settlement, which resulted in Williams stepping down as director, as GlobeSt.com previously reported.
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