(Adds background; updates shares)
April 29 American Realty Capital Properties Inc
and NorthStar Realty Finance Corp said they
were not currently in merger talks, a day after reports that
American Realty was looking to buy the real estate financing
NorthStar Realty shares fell nearly 7 percent to $16 before
the bell. They had risen as much as 12 percent on Monday.
"ARCP actively evaluates opportunities and is in discussions
with many companies over potential combinations; however, the
company is not currently in discussions with NorthStar,"
American Realty said in a statement.
Sources told Reuters on Monday that American Realty, a real
estate investment trust, was in talks to buy NorthStar Realty, a
loan originator and manager of commercial real estate debt. The
discussions were preliminary, and there was no guarantee a deal
would materialize, the sources said.
"While NorthStar may engage in discussions with interested
parties and focuses on maximizing shareholder value, NorthStar
is not currently engaged in discussions with American Realty
Capital Properties," NorthStar said in a statement on Tuesday.
The companies, which did not specify whether they were in
talks previously, were not reachable for comment outside regular
U.S. business hours.
New York-based American Realty has expanded in the "net
lease" sector - where tenants pay most of the operating costs -
by buying Cole Real Estate Investments Inc, CapLease Inc and
American Realty Capital Trust IV.
NorthStar Realty shares closed up 7.3 percent at $17.20 on
the New York Stock Exchange on Monday, bringing the company's
market value to about $5.6 billion.
Shares of American Realty, which has a market capitalization
of nearly $10 billion, closed at $12.62 on the Nasdaq.
(Reporting by Sagarika Jaisinghani in Bangalore; Editing by
Sriraj Kalluvila and Don Sebastian)