CXP - Columbia Property Trust takeout bid may be tough for board to reject analyst says

Columbia Property Trust's (CXP) $19.50/share takeout offer from an investor group appears to be attractive, according to a BMO analyst. CXP gained 11% on the bid news.If financing is in place, it may be difficult for CXP's board to reject the bid, BMO analyst John Kim wrote in note earlier. The offer appears attractive to holders given the premium and 100% cash consideration, though there is some uncertainty given the unidentified financing partner.BMO sees low likelihood of a competing bid due to uncertainty on market rents and vacancy. Another bidder can't be ruled out and CXP also has existing joint ventures with Blackstone (BX) and Allianz.The bid for Columbia Property is the second since 2018, when the company reportedly explored a sale after receiving interest. This has led to some investor skepticism that CXP will accept this current offer, Kim said.Earlier, Columbia Property Trust confirms receipt of unsolicited, non-binding acquisition proposal.

For further details see:

Columbia Property Trust takeout bid may be tough for board to reject, analyst says