American Realty Capital Properties Inc. (ARCP), Thursday withdrew its bid to acquire Cole Credit Property Trust III Inc. for about $9.7 billion, including debt, as the latter repeatedly spurned the offer.
In March, American Realty raised its offer to acquire Cole Credit for $12.50 per share in cash or $13.59 per share in stock, up from its prior offer of $12 per share either in cash or stock. Cole Credit rejected both offers and went to acquire its sponsor Cole Holdings, a move American Capital said went against industry best practices.
Had American Capital's offer fructified, the deal would have created the largest publicly traded REIT in the net-lease sector. Cole Credit owns 926 properties with a combined area of about 40 million square feet, while American Realty has 1,706 properties with a combined area of about 60 million square feet.
Cole Credit, at the time of rejecting the initial offer, said American Capital's bid undervalued the company. Cole Credit also had outlined plans to get listed on the New York Stock Exchange.
American Realty had expressed frustration at the lack of any real engagement by Cole Credit's special committee, despite a promise to its stockholders it would do so.
"Our objectives have been and will remain to grow earnings and build shareholder value. We are focused on continuing to increase value for ARCP's investors from our highly accretive property acquisition pipeline and other potential, significant strategic combinations," said American Capital CEO Nicholas Schorsch.
ARCP is trading at $15.87, up 2.39%, on a volume of 3.6 million shares on the Nasdaq.
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