real estate division agreed to acquire
Glenborough Realty Trust
in an all-cash transaction valued at roughly $1.9 billion.
Each share of Glenborough will be bought for $26 a share, an 8.2% premium over its closing price Friday. Morgan expects to complete the deal in the fourth quarter. The purchase requires the approval of Glenborough's stockholders, but the company's board has already cleared the arrangement.
Shares of Glenborough were rising $3.72, or 15.5%, to $27.75 in premarket trading Monday.
"This transaction allows Glenborough to unlock tremendous value for our stockholders and demonstrates the inherent value of Glenborough's assets and our operating platform," the real estate investment trust said.
Glenborough is focused on owning multitenant office properties concentrated in Washington, D.C., northern and southern California, Boston and northern New Jersey. The company has a portfolio of 45 properties.