S&P: Vornado unchanged

Standard & Poor's said its BBB+ corporate credit ratings and stable outlooks on Vornado Realty Trust and its operating subsidiary, Vornado Realty LP, are not immediately affected by Vornado's new, higher bid to acquire Equity Office Properties Trust (BBB/Watch negative).

However, the agency said it will place the ratings on CreditWatch with negative implications if shareholders approve the acquisition as currently contemplated.

Vornado raised its offer to acquire Equity Office to $56.00 per share, an 8% premium over its prior bid. Total consideration would approach $41 billion.

Vornado intends to contribute $10.5 billion of equity and has received financing commitments for $30.5 billion of debt. Management intends to sell $10 billion of assets to Starwood Capital Group Global LLC and Walton Street Capital LLC and another $10 billion of assets to unidentified third parties, the agency said.

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