The shareholders of Cole Credit Property Trust III have filed a suit in a Maryland court to issue an injunction on the planned internal merger. The merger would involve a company owned by its Chairman at the same time while deciding a buyout offer.
The offer is from American Realty Capital Properties Inc amounting to US$6.7 billion.
The suit claims that Christopher Cole is seeking a merger without undergoing a shareholder vote with the non traded real estate investment trust that Cole Holdings Corp owns.
According to John Isbister, lawyer for the petitioner shareholders, "The only winner if the merger is not voted on by shareholders and is consummated is Christopher Cole. The only loser if the merger is voted on by the shareholders and rejected is Christopher Cole."
Cole Holdings manages 2,000 commercial properties agreed to be acquired by Cole Credit last March 6. The terms of the deal includes an initial payment of US$20 million in cashe and 10.7 million shares of stock.
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