UPDATE 1-Compson offers to buy Agree Realty for $328.7 mln
(Recasts; adds details, share movement)
Oct 13 (Reuters) - An affiliate of commercial real estate firm Compson Development offered to buy Agree Realty Corp (ADC.N) for about $328.7 million, more than two years after it had made a higher bid that was shot down by Agree Realty.
The latest offer represents a price of about $27.50 per share -- 25.3 percent more than Agree Realty's Friday closing price of $21.95. Shares of Farmington Hills, Michigan-based Agree Realty were up more than 12 percent at $24.61 in late morning trade Monday on the New York Stock Exchange.
Compson Development affiliate Compson Holding Corp had tried to buy Agree Realty for $38.75 per share in cash more than two years ago, but was spurned as Agree Realty believed the offer was "not in the best interests of the shareholders," Compson president Michael Comparato said in a letter to Agree Realty's chairman. As of market close on Friday, the value of Agree Realty's shares was 43 percent below Compson's original offer, and Agree's board must immediately find ways to enhance shareholder value, Comparato said in the letter.
"One of many alternatives available to the board of directors to maximize shareholder value would be to reconsider a sale of the company," Comparato said.
Agree Realty could not be immediately reached for comment. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Pratish Narayanan)
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