Two Real Estate Giants Insist No Deal in the Works

Two Real Estate Giants Insist No Deal in the Works (Reuters)

Yesterday, two U.S. real estate giants, American Realty Capital Properties Inc. (ARCP) and NorthStar Realty Finance Corp (NRF), issued statements denying that they were engaged in merger talks. If anything can be gleaned from their individual messages, it’s this: the two companies are definitely negotiating something, they’re just not calling it a merger. But the investing public is well aware of how corporate marketers can spin a message. Thus, investors sent Northstar shares zooming 12 percent on Monday, before giving back some of that gain prior to the closing bell. Depending upon how a deal is ultimately structured — and named — shareholders who saw through the companies’ “no merger” messages could make a hefty profit.

Wayne Ellis

Wayne Ellis has been involved in the financial publishing industry for more than 15 years. During that time, he has helped to edit, to market and to launch products and services for Ernst & Young, LLC, Fidelity Investments, Agora, LLC, and Eagle Financial Publications. He currently puts his broad-based experience and industry expertise to use as a contributing writer for Eagle Financial Publications. He also is a graduate of Arizona State University.

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