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