Colony in Talks for NorthStar Asset Mgmt.

Thomas Barrack’s Colony Capital is in discussions about a tri-party deal.

LOS ANGELES and NEW YORK CITY—Confirming published reports, Colony Capital Inc. and NorthStar Asset Management Group Inc. said Friday afternon they’re in talks for Los Angeles-based Colony to acquire NSAM. Colony, NSAM and NorthStar Realty Finance, which manages NSAM via an affiliate, would engineer a tri-party all stock “at the market” business combination based upon historical trading prices. Bloomberg Business first reported the talks on Friday.

In a joint statement, the three companies said the combination would create “a world-class diversified real estate and investment management equity REIT with significant scale, deep management talent, and the opportunity to generate substantial revenue and expense synergies.” The statement provided no guaatees that a deal would occur, and the three companies don’t intend to provide interim updates.