Brookfield, Blackstone Buying Trizec

Brookfield Properties Corp., together with the Blackstone Group, is acquiring Trizec Properties, Chicago, and Toronto-based Trizec Canada in a transaction valued at US$8.9 billion.Brookfield, a New York-based office real estate investment trust, is acquiring the common stock of Trizec Properties at $29.01 per share in cash and the shares of Trizec Canada for US$30.97 (C$34.09) per share in cash. The additional US$1.96 cash consideration per Trizec Canada share reflects the value of Trizec Canada's net assets other than its approximately 38% interest in Trizec Properties, Trizec said. The price for the Trizec Properties common stock represents an 18% premium over its June 2 closing price of $24.60 on the New York Stock Exchange. And the price for Trizec Canada shares represents a 30% premium over its closing price on the Toronto Stock Exchange on June 2, the REIT reported. Tim Callahan, president and chief executive of Trizec Properties, said Trizec "continues to be undervalued in the public markets" and added that the sale delivers better value to Trizec shareholders. Mr. Callahan said he does not expect to be a part of the organization after the expected closing of the sale in the third or fourth quarter. Brookfield can be found online at http://www.brookfieldproperties.com.