1st Union RE, Gotham Cancel Merger

First Union Real Estate Equity and Mortgage Investments, a stapled-stock real estate investment trust based in New York, and Gotham Partners LP, formerly a major shareholder in the REIT, have announced an agreement terminating their proposed merger.The proposed merger of First Union into Gotham Golf Corp. has been enjoined by an order of the New York State Supreme Court for New York County that has been appealed by both parties, the companies reported. Under the termination pact, First Union made a $2.4 million termination payment and has purchased all the approximately 5.84 million common shares owned by Gotham and its affiliates at $1.90 per share. First Union said it has no plans to pursue an alternative transaction and intends to continue operating as a REIT.