This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Acquisition Of CapLease, Inc. By American Realty Capital Properties, Inc. May Not Be In The Best Interests Of CapLease Shareholders

SAN DIEGO and NEW YORK, May 29, 2013 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the acquisition of CapLease, Inc. (NYSE: LSE) by American Realty Capital Properties, Inc. (NASDAQ: ARCP).  On May 28, 2013, the companies announced the signing of a definitive merger agreement under which American Realty will acquire CapLease for $8.50 per share of common stock in cash. 

(Logo: http://photos.prnewswire.com/prnh/20130103/MM36754LOGO)

The Board of Directors' Actions May Prevent CapLease Shareholders from Receiving Maximum Value for Their Stock

Robbins Arroyo LLP's investigation focuses on whether the board of directors at CapLease is undertaking a fair process to obtain maximum value and adequately compensate its shareholders in the merger.

On May 28, 2013, the companies announced the signing of a definitive merger agreement under which American Realty will acquire CapLease for $8.50 per share of common stock in cash.  The $8.50 merger consideration is significantly below the target price of $9.00 set by an analyst at Sidoti & Company LLC.

Is the Acquisition Best for CapLease and Its Shareholders?

On May 8, 2013, CapLease released its financial results for the quarter ended March 31, 2013, reflecting an increase in total revenues and rental revenue.  Specifically, total revenues increased 11% year-over-year to $43.3 million and rental revenue increased 7% year-over-year to $35.2 million.  Further, the company's common stock dividend has increased 19% since the second quarter of 2012, representing the third consecutive quarter of a dividend increase.

In announcing the results, Paul McDowell, CapLease Chairman and Chief Executive Officer, commented, "We have had a strong start to 2013, highlighted by solid FFO results, over $90 million of pending property acquisitions, continued growth in our market capitalization which now exceeds $600 million, and our third consecutive quarter of raising the common stock dividend. We have a large and growing pipeline of potential acquisitions and remain optimistic about the prospects for our business and our ability to grow the portfolio significantly for the year."

Given these facts, the firm is examining the board of directors' decision to sell CapLease now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.   

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs