Huntingdon Matches Plazacorp's Bid For KEYreit
Huntingdonupped the ante in what is turning into a bidding war for ownership of KEYreit. (Two companies fighting to win the affection of a REIT... very romantic.) It announced Tuesday that it's matching Plazacorp Retail Properties' offer of $8/unit cash for the small-box retail owner, as well as a cash/stock option. (It already owns 5.4% of KEYreit.) An analyst from Dundee Capital Markets told us he expects Plazacorp will increase its offer--possibly into an all-cash option--because of its due diligence on KEYreits portfolio; the room to knock down CEO John Bitoves management contract termination fees; and credit facility provider RBC'sfinancial muscle. Two motivated buyers translates into a period of uncertainty, the analyst says. A Plazacorp spokesperson (above is a Dollarama at itsAuroralocation) tells us the company is reviewing its options.
