Blackstone Raises Offer for Equity Office

Following the emergence of a competing bid for Equity Office Properties Trust from New York-based Vornado Realty Trust and its partners, The Blackstone Group has raised its offer to $54 per share in cash.This would value the transaction, including the assumption of debt, at about $38.3 billion, the Chicago-based real estate investment trust reported. The revised Blackstone offer represents an increase of over 11% from the real estate investment firm's previous offer of $48.50 per share and is also higher than the $52 per share offered by the Vornado partnership (which includes Starwood Capital Group and Walton Street Capital). In addition, Blackstone has negotiated a termination fee of $500 million, up from $200 million, if Equity Office decides to back off from the Blackstone proposal and pursue another offer. The Equity Office board continues to recommend the Blackstone proposal, the REIT reported, and Equity Office shareholders are scheduled to vote Feb. 5 on the deal. The REIT can be found online at http://www.equityoffice.com.