Equity One Bid Falling on Cedar

Equity One (EQY Quote) unveiled an unsolicited $17-a-share cash bid for rival shopping center developer Cedar Shopping Centers (CDR Quote).

The North Miami Beach, Fla., company said its proposal would give holders of Port Washington, N.Y.-based Cedar a 14% premium to recent trading prices. Equity One also called on Cedar to withdraw a 9-million-share offering it announced Wednesday.

Shares in both companies were halted Thursday.

"We have the capacity to finance and complete this transaction for cash, but would be willing to consider an equity component if desirable to Cedar's board and existing shareholders," said Equity One Chief Chaim Katzman. "We prefer to work cooperatively with Cedar's management and board of directors, and hope to commence these discussions as soon as possible to finalize the terms of a definitive transaction."