NEW YORK (TheStreet) -- Northstar Realty Finance (NRF) lost most of its Monday gains on Tuesday after the company announced it was not in talks with American Realty Capital Properties (ARCP) about a takeover.
Financial Times reporter Ed Hammond tweeted Monday morning that American Realty was in talks for a takeover of NorthStar at $20 a share. The news sent NorthStar shares to a five-year high of $17.93, but the stock had fallen off 6.89% to $16.01 at 11:43 a.m. on Tuesday.
NorthStar said in a statement it is focusing on its business strategies, including a spin-off of its asset management business, and that it does not rule out "discussions with interested parties."
TheStreet Ratings team rates NORTHSTAR REALTY FINANCE CP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate NORTHSTAR REALTY FINANCE CP (NRF) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."