NEW YORK (TheStreet) -- Shares of Glimcher Realty Trust (GRT) are jumping after it announced earlier today that it had agreed to sell itself to Washington Prime Group (WPG) for $14.20 per share. Glimcher and Washington Prime are real estate investment trusts, or REITs, that invest in shopping malls and community shopping centers.
WHAT'S NEW: Washington has agreed to buy Glimcher for about $4.3B in a cash and stock deal. Glimcher shareholders will receive $10.40 in cash and 0.1989 of a share of Washington stock upon the closing of the transaction, the companies stated. Meanwhile, another REIT, Simon Property Group (SPG) , agreed to buy two shopping malls owned by Glimcher - Jersey Gardens in Elizabeth, New Jersey and University Park Village in Fort Worth, Texas - for $1.09B in cash.
WHAT'S NOTABLE: In a note to investors today, Wells Fargo upgraded another REIT, CBL & Associates (CBL) , to Market Perform from Underperform. In the note, the firm stated that the Glimcher acquisition and Simon Property's purchase of two of Glimcher's malls support its belief that "B" mall asset prices are strong enough to justify a low $20 per share valuation for CBL.
PRICE ACTION: In early trading, Glimcher jumped 30% to $13.80, CBL rallied 5% to $18.57, and Washington Prime fell 7% to $17.13. Meanwhile, the shares of two other mall owners, Rouse Properties (RSE) and Pennsylvania REIT (PEI) , increased 3% and 5.5%, respectively. Simon Property Group, which completed its separation of Washington Prime Group this May, was up 0.5% following the news.