The boards of three related non-exchange traded real estate investment trusts are calling on shareholders to reject unsolicited tender offers made by the investment firm of MacKenzie Patterson Fuller LP.
MPF, in its solicitations, makes the argument to the shareholders in Apple REIT Six Inc., Apple REIT Seven Inc. and Apple REIT Eight Inc. that its offers allows them "to regain control of their money" from an illiquid investment. All three REITs invest in and own hotel properties.
MPF made an offer to buy five million shares in each of the companies; the offer is $5 per share for Apple Six and $4 for the other two. All three offers are scheduled to expire on Oct. 28.
The press releases from each of the three REITs call the MPF offer "an opportunistic attempt...to purchase units as an unreasonably low price."
All three offers, the REITs claim, are below the stock's book value, but the boards added the book value might not be representative of each individual REIT's liquidation value.
The offers, the boards add, are below MPF's own estimate of the liquidation value; over 28% for Apple Six, over 18% for Apple Seven; and over 6% for Apple Eight.
