Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Annaly Ups Offer for Rest of CreXus

REIT Annaly Capital Management (NYSE: NLY  ) announced today that it has agreed to acquire the remaining shares of CreXus Investment (UNKNOWN: CXS.DL.DL  ) for $13 per share -- up from a previous offer of $12.50 -- for a total value of $872 million. Annaly currently owns approximately 12.4% of CreXus, and says it will purchase all remaining shares for $13 per share plus a prorated dividend payment.

The announcement pushed shares up to $13.28 as of this writing, a 6.2% premium over yesterday's $12.50 closing price.

Annaly had proposed a $12.50-per-share buyout on Nov. 9. The terms announced today stem from negotiations between Annaly and CreXus, and the $13 per share represents a 17% premium to Crexus' stock price before Annaly's initial acquisition proposal.

"This transaction represents a significant step toward Annaly's commitment to investing directly in commercial real estate assets," said Chairman and CEO Wellington Denahan in a statement today. "We believe that wholly owning the commercial real estate platform we currently manage through [Fixed Income Discount Advisory Company] is complementary to our existing business and return profile and should provide stable and diversified risk-adjusted returns to our shareholders."

CreXus has 45 days in which to solicit and evaluate other offers.

The all-cash offer is part of Annaly's larger capital allocation strategy, and is aimed at helping to scale the company's commercial platform while diversifying its investment portfolio.


Read/Post Comments (1) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 01, 2013, at 2:19 PM, cred13 wrote:

    Why would NLY bid over book on CXS. If CXS has anything NLY doesn't have, like their portfolio which NLX was responsible for, NLX could buy their own. Sounds like a perk for shareholders of CXS that NLY will soon have to explain to NLY shareholders.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2228454, ~/Articles/ArticleHandler.aspx, 9/29/2016 9:48:47 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 32 minutes ago Sponsored by:
DOW 18,143.45 -195.79 -1.07%
S&P 500 2,151.13 -20.24 -0.93%
NASD 5,269.15 -49.39 -0.93%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
CXS.DL.DL $0.00 Down +0.00 +0.00%
CreXus Investment CAPS Rating: ***
NLY $10.45 Down -0.04 -0.38%
Annaly Capital Man… CAPS Rating: ****