Veris Residential gains after it reiterates Kushner bid `grossly undervalues' company
Veris Residential (NYSE:VRE) rose 2.5% after the apartment REIT reiterated that Kushner Companies $16/share bid undervalued the company.
"The Board unanimously believes that the Kushner Companies’ $16.00 per share proposal grossly undervalues the company and denies shareholders the substantial, long-term value expected to be unlocked from the company’s nearly complete strategic transformation," Veris Residential (VRE) said in a 8-K filing Friday in a response to Kushner's offer.
Veris (VRE) added that the board remains open to any proposals that maximize value for holders.
The Veris (VRE) response follows a Wall Street Journal report Tuesday that Fortress Investment Group agreed to help fund Kushner Cos.’ unsolicited $4.3B bid to acquire the apartment REIT. Affiliates of Fortress were prepared to back the debt and equity needed to complete the offer, the WSJ said, citing a November 17 letter from Fortress to Veris's board.
Last month Kushner made an unsolicited proposals to acquire Veris (VRE), which mostly owns New Jersey apartment buildings, for $16 a share, or to externally manage the company's real estate portfolio. But Veris's board then rejected Kushner's buyout offer since neither proposal was in shareholders' best interests.