Post Properties president and CEO David Stockert said the company does not expect to disclose further details regarding the process until it has been completed. "Our board and management are 100% committed to the process and plan to move it forward and broadly encourage bids," Stockert said.
On Jan. 23, Post revealed that is entertaining a nearly $2-billion offer from Cadim and Williams Realty Advisors LLC to acquire all of the company's outstanding common shares at a price range of $44 to $47 per share in cash. 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. The written proposal--which was received unsolicited--states that is subject to a due diligence condition, but is not subject to any financing contingencies.
Post is 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. Post has stressed that the process may or may not result in the sale of the company.
Due to sale discussions, the company declined to disclose earnings or FFO guidance for 2008. As a result of the discussions, both Standard and Poors and Moody's rating agencies placed the company's credit rating outlook on "credit watch" or "developing" pending the outcome of the process.
The company reported net income of $77.3 million for the fourth quarter, compared to $45 million for the fourth quarter of 2006. On a diluted per share basis, net income was $1.76 per share for the fourth quarter, compared to $1.02 per share for the same time period last year.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
