Shareholder Rights Law Firm Johnson & Weaver, LLP Announces Investigation Of Proposed Sale Of BRE Properties Inc. To Essex Property Trust

Shareholder Rights Law Firm Johnson & Weaver, LLP is investigating whether members of the board of directors of BRE Properties Inc. (NYSE: BRE) breached their fiduciary duties in connection with the planned merger of the Company with Essex Property Trust (NYSE: ESS). BRE Properties Inc. is an independent real estate investment trust. It focuses on the development, acquisition, and management of multi-family apartment communities.

On December 19, 2013, BRE and Essex announced that they had entered into a definitive agreement. Under the terms of the agreement, each BRE common share will be converted into 0.2971 newly issued shares of Essex common stock plus $12.33 in cash. Based on the closing stock price for Essex on December 18, 2013, this transaction is valued at $56.21 per BRE share.

Jim Baker, lead analyst for Johnson & Weaver, stated that, "Essex’s offer appears to be inadequate and not in the best interest of BRE's shareholders." In particular, Baker noted that “BRE has traded as high as $61.50 earlier this year and one analyst has a $59.00 target on the stock.”

Another concern with the deal is the fact that it is tied to Essex’s stock price. Baker explained, “If Essex’s stock price declines, then BRE shareholders will ultimately receive less for their shares.” This concern has manifested itself. On December 19, 2013 in mid-day trading, BRE’s stock is down 2.75% from yesterday’s close, likely correlated to Essex’s 2.60% stock decline.

The investigation concerns whether BRE’s board members failed to satisfy their duties to the Company’s shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for the Company’s shares of common stock.

If you are BRE shareholder and would like additional information concerning your legal rights, please contact lead analyst Jim Baker ( jimb@johnsonandweaver.com) at 619-230-0063.

Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California and New York. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.

Copyright Business Wire 2010

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