CoreSite Realty gains after report it's exploring options after approach (update)

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• Update 1:55pm: Updates shares, adds Citi analyst comment.
• Data center operator CoreSite Realty (NYSE:COR) jumped almost 5% after a report that the company is exploring options after getting acquisition interest.
• CoreSite has been approached by American Tower (NYSE:AMT) and Digital Realty Trust (NYSE:DLR) as well as private equity firms on a potential deal, according to a Reuters report, which cited people familiar.
• The article comes on the first day of Nareit's REITworld conference, one of the main conferences for the REIT industry of the year and where other deals have been announced in the past. There has been a lot of consolidation in data center space in recent years, including QTS Realty announcement of $10B sale to Blackstone in early June.
• CoreSite’s management was expected to participate in the Nareit REITworld Virtual conference today.
• CoreSite management did meet with Citi, though the company would comment on the Reuters report, according to a Citi note.
• CoreSite (COR) in a bull-case scenario may be worth $180/share in a takeout and Citi wouldn't be surprised to see a bidding war emerge.
• See yesterday, Watch CyrusOne (NASDAQ:CONE) ahead of REITworld event.

Comments

[ComputerBlue]

Doubt anyone buy's COR after todays move...esp when they can go buy CONE at todays price.

[VideoUser]

@ComputerBlue Can they though? What happens to the CONE price if word gets out that they've been approached by potential buyers and are exploring options? I own a bit of both and wouldn't be surprised if they both are bought out eventually, but kind of doubt either will go as cheaply and easily as when BX bought out QTS.

[ComputerBlue]

@VideoUser theyve had rumors on/off this year..better value than COR today.

[user1416]

@ComputerBlue Maybe they only want a North American footprint with good organic growth and strong interconnect? CONE has been for sale for years but has yet to find a buyer.

Held CONE and COR for long time but sold both on previous buyout rumors. I think you are better off holding the potential acquirer and for me that has been Blackstone.