Equity One suggests acquisition of Ramco-Gershenson

New York, March 26 - Ramco-Gershenson Properties Trust shareholder Equity One, Inc. suggested that the two companies discuss an acquisition of Ramco-Gershenson by Equity One.

The proposal was prompted by events that began with Equity One's announcement on March 5 that it has taken a 9.63% stake in Ramco-Gershenson, followed by a letter from Equity One to Ramco-Gershenson.

On March 25, Ramco-Gershenson said it was considering strategic alternatives with the assistance of Merrill Lynch & Co.

Alternatives to be considered include financing and restructuring transactions, assets sales and strategic transactions with third parties, Ramco-Gershenson said in its announcement, noting that it had received indications of interest from third parties, including Equity One, regarding potential transactions.

Equity One has now followed up with a further letter, and added that it "stands ready to participate in any process conducted by RPT [Ramco-Gershenson] with a view toward maximizing value for all RPT shareholders."

In a letter to Dennis E. Gershenson, the chairman, president and chief executive officer of Ramco-Gershenson, Equity One chief executive officer Jeffrey S. Olson wrote that "Equity One believes that a combination of our two companies may be the optimal outcome of any strategic review, and we stand ready to work expeditiously with you and your advisors as part of such a process."

But he also requested that all parties that may be interested by given a level playing field.

Olson agreed that a prompt review "makes sense," particularly as a delay could erode shareholder value, "given the urgent need for RPT to address its short-term debt maturities and material future funding needs."

Equity One intends to nominate two directors for election to Ramco-Gershenson's board at the June annual general meeting.

Ramco-Gershenson is a real estate investment trust based in Farmington Hills, Mich. Equity One is a North Miami Beach, Fla.-based real estate company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.