CXP - Here's Why Columbia Property Trust Soared on Tuesday
Real estate investment trusts, or REITs, aren't exactly known for their large price swings, but that's exactly what we're seeing with office REIT Columbia Property Trust (NYSE: CXP) . As of 2 p.m. EDT Tuesday, Columbia Property Trust shares were higher by about 15%.
There is a clear reason for today's move and it isn't earnings. Rather, it was announced early Tuesday morning that Columbia's board has agreed to be acquired by PIMCO for $3.9 billion, inclusive of debt. The takeover is an all-cash transaction, with Columbia shareholders set to receive $19.30 in cash for each of their shares of the REIT. This is roughly 16% higher than where Columbia shares closed at the end of the previous trading session, and explains today's move.
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Here's Why Columbia Property Trust Soared on Tuesday