Seeking Alpha

More on possible ARCP/NRF hookup

  • Fresh off its purchase of Cole Real Estate, American Realty Capital (ARCP -0.3%) is reportedly in talks to acquire NorthStar Realty Finance (NRF +9.8%), though sources remind the discussions are preliminary and a deal may not materialize.
  • ARCP has a market cap of about $10B and NorthStar's would be $6.5B at the $20 per share takeover price being bandied about (25% above Friday's close).
  • Previously: Takeover chatter for NorthStar Realty
Comments (11)
  • grox01
    , contributor
    Comments (598) | Send Message
     
    ARCP.... please don't pay too much, I like the way you are now :)
    28 Apr, 11:37 AM Reply Like
  • Stock Market Mike
    , contributor
    Comments (1861) | Send Message
     
    http://bit.ly/1kaxFxK

     

    This induced a huge (capitulation?) selloff in ARCP yesterday. NRF says no such deal is happening?

     

    Hmm... suspicious.

     

    -Mike
    29 Apr, 10:19 AM Reply Like
  • Orthoeconomics
    , contributor
    Comments (31) | Send Message
     
    NRF is easily worth $22 per share. Your ARCP would be getting it at a discount!
    28 Apr, 12:31 PM Reply Like
  • Union Trade Assoc
    , contributor
    Comments (646) | Send Message
     
    Of course, why do you think Insider share purchases at ARCP have increased through the month of April .... another Targeted acquisition
    28 Apr, 01:00 PM Reply Like
  • NV_GARY
    , contributor
    Comments (1768) | Send Message
     
    They were overpaying as recently as 4/21 -NRF must be a very recent go-ahead.
    28 Apr, 03:12 PM Reply Like
  • jschroeder05
    , contributor
    Comments (5) | Send Message
     
    NRF would definitely bring grow and excellent management. If it is not a stock deal I will get killed in taxes. Hoping for no deal or a stock deal.
    28 Apr, 02:25 PM Reply Like
  • Orthoeconomics
    , contributor
    Comments (31) | Send Message
     
    It is better to make a killing and pay taxes than to never have to pay any taxes!
    28 Apr, 06:02 PM Reply Like
  • philjax
    , contributor
    Comments (4) | Send Message
     
    Compare ARCP performance since going public with that of NRF over same period. ARCP management has created zero value for investors (-1%), while NRF has significantly outperformed ( up 370%). It is easy to see why ARCP wants to do this deal. NRF is clearly the better company here. In addition to the price appreciation, NRF dividend growth has significantly eclipsed that of ARCP over the same time period. Aside from using stock and debt to do these deals, and then putting out press releases telling everyone how spectacular they are, what has ARCP accomplished for investors? Lots of companies pay dividends...and there are plenty of others that have grown principal value as well. Is ARCP just hype?
    29 Apr, 02:35 AM Reply Like
  • philjax
    , contributor
    Comments (4) | Send Message
     
    Compare stock performance of ARCP to that of NRF since ARCP went public. No value created by ARCP management since inception, while NRF has outperformed by wide margin. No wonder ARCP wants this deal. NRF is easily the better company here.
    29 Apr, 02:35 AM Reply Like
  • Gat
    , contributor
    Comments (13) | Send Message
     
    NRF is worth north of $25, in due course.
    29 Apr, 10:20 AM Reply Like
  • Union Trade Assoc
    , contributor
    Comments (646) | Send Message
     
    Mute point. Accordingly, this is not a Merger which ARCP is seeking as of today's announcement.
    And look at ' The Streets ' latest Report. ' Significant internal growth has recently occurred within ARCP ' compared with previous Quarters.
    29 Apr, 12:48 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|