REIT Proposes Settlement of Merger Suit

Center Trust Inc., Manhattan Beach, Calif., has announced a proposed settlement of litigation regarding its proposed merger with Pan Pacific Retail Properties Inc., Vista, Calif.Center Trust has entered into a memorandum of understanding concerning a settlement of the lawsuit, which was filed by Paul Berger on behalf of "a putative class" of Center Trust stockholders, the real estate investment trust said. In connection with the proposed settlement, Center Trust said it provided additional disclosures about the merger, and Pan Pacific, an equity REIT, has agreed to reduce the termination fee (payable by Center Trust to Pan Pacific under certain circumstances) from $7.5 million to $6.0 million. Under the merger agreement, Pan Pacific would acquire Center Trust, and each Center Trust share would be exchanged for 0.218 of a share in Pan Pacific.