CreXus Investment Corp., based in New York, has rejected an unconditional offer by Greenwich, Conn.-based Starwood Property Trust to acquire all of the company's outstanding shares of common stock for $14 per share. Had the proposal been accepted, it would have create the largest U.S. commercial mortgage real estate investment trust.
‘As previously announced, CreXus is proceeding with its common stock offerings, the proceeds of which will be used primarily to fund the acquisition of a portfolio of approximately $586 million of commercial real estate assets from Barclays Capital Real Estate Finance Inc.,’ said the company in a press statement.
Barry Sternlicht, chairman and CEO of Starwood Property Trust, stated that his company's offer would have benefited the CreXus substantially.
‘We believe our offer, which is at a substantial premium to CreXus' current stock price and above virtually all of CreXus' trading prices since its initial public offering in September 2009, represents a compelling opportunity for CreXus' stockholders,’ he says. ‘CreXus stockholders would receive stock in a significantly more liquid entity without facing the substantial book value dilution of CreXus' pending equity offering.’
SOURCES: CreXus Investment Corp., Starwood Property Trust
