Essex offers to buy BRE Properties for about $4.48 billion

Mon Dec 9, 2013 9:43am EST

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(Reuters) - Essex Property Trust Inc (ESS.N), a manager of residential properties on the U.S. West Coast, offered to buy BRE Properties Inc BRE.N for about $4.48 billion in stock and cash.

BRE shares were down 2 percent at $58.15 before the bell. They have risen 11 percent to close at $59.34 on Friday after Bloomberg reported on December 4 that Essex had offered to buy the real estate investment trust for about $5 billion.

Essex has offered each BRE shareholder about 0.2971 shares of its stock and $12.33 in cash, the equivalent of about $58 per share.

BRE, which operates apartment communities in California and Seattle, said on Monday that it was exploring strategic alternatives and had agreed to an exclusivity period to discuss the offer with Essex.

Investment firm and BRE shareholder Land & Buildings said last week that the company should sell itself.

A consortium led by Land & Buildings offered to buy BRE for $60 per share in July but the company rejected the offer.

(Reporting by Sagarika Jaisinghani in Bangalore; Editing by Sriraj Kalluvila)

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