Archstone Shares Up on Possible Tishman Deal

Apartment owner Archstone-Smith(ASN Quote) surged nearly 9% Friday after an industry publication said the company was in talks with real estate firm Tishman Speyer about being acquired.

REIT Wrap, published by long-time industry watcher Barry Vinocur, reported the news.

"Whether or not Tishman may be involved, we believe ASN is one of the most likely privatization candidates given its high-quality assets," and presence in key markets such as New York City, Washington D.C., and California, said UBS analyst Alexander Goldfarb in a research note Friday morning. Archstone also benefits from low leverage and "its high-rise properties can be viewed as call-options on the next condo-wave," Goldfarb said.

Archstone rose $4.44 to $55.57 in early trading. Other apartment REITs got a lift from the report. Equity Residential(EQR Quote) rose $2.15 to $48.52, and AvalonBay(AVB Quote) increased $3.79 to $119.53.