Lehman Brothers has agreed to sell the assets of apartment owner Archstone to rivals Equity Residential and AvalonBay Communities Inc for about $6.5 billion in cash and stock and the absorption of debt, bringing the total value of the deal to $16 billion, the companies said Monday.The deal comes shortly after Archstone filed for a $3.5 billion initial public offering. It also follows an Equity Residential's unsuccessful bid earlier this year to purchase the entire company, which includes apartment buildings and communities major U.S. cities.Under the deal, which is expected to close in the first quarter, Equity Residential will own 60 percent of Archstone's assets and liabilities and AvalonBay will own 40 percent. The transaction does not require approval from Equity Residential or AvalonBay shareholders.The combined purchase price includes $2.7 billion of cash and stock from Equity Residential and AvalonBay valued at $3.8 billion as well as the assumption of $9.5 billion in debt and $330 million of preferred equity.
AvalonBay Communities, Inc. (AvalonBay) is a real estate investment trust (REIT). Shares of AVB traded higher by 0.32% or $0.41/share to $128.95. In the past year, the shares have traded as low as $117.97 and as high as $151.23. On average, 601016 shares of AVB exchange hands on a given day and today's volume is recorded at 520858.
Equity Residential (EQR) is a real estate investment trust (REIT). Shares of EQR fell by 0.06% or $-0.03/share to $54.43. In the past year, the shares have traded as low as $52.39 and as high as $65.72. On average, 1630160 shares of EQR exchange hands on a given day and today's volume is recorded at 1495174.
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