No Agreement
Nov 1, 2008 12:00 PM
The board of directors at Agree Realty Corp. unanimously rejected an unsolicited acquisition proposal from Compson Holding Corp. The Board determined that the Compson proposal was inadequate and that continuing to implement the company's long-term business plan would maximize stockholder value. Weeks earlier, an affiliate of commercial real estate firm Compson Development offered to buy Agree for about $328.7 million, or $27.50 per share. That represented a 25.3 percent premium to where Agree had closed trading the previous day. (At press time, Agree stock was trading at about $18.00 per share.) Two years earlier, Compson mounted another unsuccessful takeover bid. In that attempt, it offered to buy Agree Realty for $38.75 per share in cash. At press time, there was no word as to whether Compson would up its offer for the shopping center REIT.
