Preferreds decline again; MPG Office preferreds slip as tender extended; Zions inches up

By Stephanie N. Rotondo

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

According to one market index - the Wells Fargo Hybrid and Preferred Securities index - the market was off by 24 basis points, or about 6 cents for $25-par securities.

In the secondary, 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.

The shares ended the day off 20 cents at $26.19.

On Thursday, Brookfield Office Properties Inc. said it had extended a tender for the shares to Aug. 2. Brookfield 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.

The company's stockholders approved the merger on July 17. Common stockholders will receive $3.15 per share in the merger agreement.

Meanwhile, Zions Bancorporation's 9.5% series C noncumulative preferreds (NYSE: ZBPC) bucked the day's trend, moving up a penny to $25.50.

The Salt Lake City-based bank holding company said Wednesday that it was planning an online auction of up to $100 million 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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