Friday, July 26, 2013 8:01 am
WP Carey buying Corporate Property for $4B
The Associated Press
The combined company will have a portfolio of more than 700 properties with 86 million square feet of corporate real estate leased to 231 companies globally. W.P. Carey will still manage the Corporate Property Associates and Carey Watermark Investors series of REITs.
Corporate Property stockholders will receive no more than 0.1842 shares and no less than 0.1447 shares of W.P. Carey for each share they own.
Corporate Property's board approved the deal, which still needs approval from both companies' shareholders.
W.P. Carey, which is based in New York, has served as an adviser to Corporate Property. The company anticipates that the acquisition will allow the combined company to boost its annualized dividend to at least $3.52 per share. W.P. Carey's annualized dividend was set at $3.36 per share. The company is expected to report its second-quarter financial results on Aug. 6.
Corporate Property may seek out alternative third-party proposals for a 30-day period through Aug. 24.