What's New in Takeovers?

A local real estate investment firm, LANDandBUILDINGS, of Greenwich, Conn., has put out a press release this morning nominating a board for BRE Properties, a New York Stock Exchange traded, San Francisco-based apartment developer. 

Bloomberg reported yesterday that the Connecticut firm's offer to buy BRE had been trumped by Essex Property Trust, another NYSE traded developer, based in Palo Alto, Calif., which has offered to purchase BRE for about $5 billion.

The Bloomberg story says that BRE is undervalued, and suggests that redundancies between BRE and Essex could be eliminated by a combination that would make Wall Street investors like LANDandBUILDINGS happy.

Today's LANDandBUILDINGS' statement confirms that view.  It notes:

"BRE has chronically underperformed its closest comparables by a number of measures, including total returns, net operating income growth, FFO growth and dividend growth. Selling the Company to a best-in-class operator such as Essex would present an opportunity for BRE Properties’ shareholders to realize the potential of the Company’s intrinsic value,” said Jonathan Litt, founder and chief executive officer of LANDandBUILDINGS. “On behalf of all shareholders, we demand that the Board exercise its fiduciary duties and maximize shareholder value by exploring a sale of the Company.”

You can see the slate of six potential directors LANDandBUILDINGS puts forward in its press release on the takeover fight HERE.

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