Equity One to Buy Cedar Shopping Centers?

Equity One, a North Miami Beach, Fla.-based retail real estate investment trust is looking at the prospect of acquiring Cedar Shopping Centers, Port Washington, N.Y., another retail REIT.In this connection, Equity One made a proposal to acquire Cedar for $17 per share last Thursday, which Cedar was not prepared to respond to by today’s deadline. In response to the offer, Cedar said, “Our Board is considering your proposal and we expect to have a response as promptly as practicable.” Equity One said that it also has “received no indication” that Cedar intends to withdraw a nine million share common stock offering that Cedar commenced on Aug. 3, which is a part of Equity One’s proposal. According to Equity One, “The nine million share offering will be highly dilutive to Cedar’s existing shareholders and is an expensive way to finance Cedar’s growth.” The Equity One offer provides a 14% premium to Cedar’s price prior to the offer, according to Equity One.