Midday Commentary: Preferreds weak; MPG Office preferreds slip as tender extended; Zions inches up

By Stephanie N. Rotondo

Phoenix, July 25 - Preferred stocks had a soft tone again as of midafternoon on Thursday, as the rest of the equity markets gyrated.

In the secondary market, MPG Office Trust Inc.'s 7.625% series A cumulative redeemable preferreds (NYSE: MPGPA) were down 39 cents, or 1.48%, at midday to $26.00.

On Thursday, Brookfield Office Properties Inc. said it had extended a tender for the shares to Aug. 2. Brookfiled had previously announced the offer in connection with its planned merger with MPG.

However, Brookfield is only offering $25.00 per share, without any accumulated dividends. MPG had previously suspended the dividend payments on the preferreds.

Brookfield said that as of Tuesday, about 190,225 preferred shares had been validly tendered.

Meanwhile, Zions Bancorporation's 9.5% series C noncumulative preferreds (NYSE: ZBPC) were up a penny at $25.50. The Salt Lake City-based bank holding company said Wednesday that it was planning an online auction of series A floating-rate noncumulative preferreds next week, the proceeds of which would go toward funding a redemption of $590 million of the series Cs.

The redemption date is Sept. 16.

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