Sunday, June 29, 2008
Post Properties Finds No Takers
Buyout rumors have swirled around Post Properties Inc. for years, but when the Atlanta-based apartment-building operator finally opened itself to offers, it got none.
Post's stock fell much further than the overall market Thursday after announcing late Wednesday that "all potential bidders" had withdrawn from its five-month sale process. Shares were down $2.17, or 6.7%, to $30.39 in 4 p.m. composite trading on the New York Stock Exchange, nearly a 52-week low.
Post, which has a market capitalization of $1.36 billion and owns more than 22,400 apartment homes in 62 communities, has been beset by animosity among its board, management and founder John Williams, who stepped down as chief executive in 2002. Mr. Williams lost a proxy battle the following year.
Post went up for sale in January after it received an unsolicited all-cash bid from Mr. Williams and Cadim, a Montreal pension fund, in the range of $44 to $47 a share. Last summer, Post rebuffed an offer from Mr. Williams in the $56-to-$59-a-share range that also was not subject to financing.
Recently, it was Mr. Williams who spurned Post. His bid rallied Post's shares above $43 from the low $30s, but it was withdrawn in March. "We sort of put our head underneath the skirts of the company, and we found some things that, frankly, made us very nervous," Mr. Williams said Thursday. He said he has no more interest in the company.
Post did not respond to calls seeking comment.
Analysts expect the company to sell off individual assets or even larger pieces.
Write to Nick Timiraos at nick.timiraos@wsj.com
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