Blackstone has raised its record buy-out offer for Equity Office Properties (EOP) by $2.3bn (£1.2bn) to $38.3bn.
EOP endorsed the move after an agreed $36bn (£18.3bn) deal with Blackstone faced a threat in recent weeks with the assembling of a consortium by Vornado Realty to make a counterbid.
EOP and Blackstone renewed the negotiations as a result. Blackstone secured in exchange for the higher price, an increase in the “break-up” fee Vornado would have to pay if it won the battle from $200m (£101m) to $500m (£254m).
EOP shareholders are due to vote on the Blackstone deal on February 5. Vornado said it was continuing to conduct its diligence and would respond “at the appropriate time”.
Financial Times 26/01/07 page 18 (Lex), page 25, The Times 26/01/07 page 44, page 51, The Daily Telegraph 26/01/07 page B2
