Cole Credit rejects rival offer, acquires Cole Holdings

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Rejecting a $6.7 billion buyout offer from rival American Realty Capital Properties Inc., Cole Credit Property Trust III has announced that it has completed the acquisition of Cole Holdings.

According to Leonard Wood, chairman of the special committee of Cole Credit's board, the acquisition of Cole Holdings will provide its stockholders with additional growth potential and increased access to capital. Cole Holdings manages more than $12 billion real estate assets.

Cole Credit, which owns more than 900 U.S. properties, plans to list its shares on the New York Stock Exchange in June.

The purchase of Cole Holdings means better dividend growth through added cash flow while the public offering will give them flexibility to sell their shares, according to Cole Credit officials.

Earlier, Cole Credit shareholders filed a suit to block the transaction with Cole Holdings. Cole Credit officials said the suit was "without merit."

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