Reuters Company News
Investors offer $7 a share for Criimi Mae
(adds Criimi Mae comment)
WASHINGTON, May 13 (Reuters) - Three Los Angeles-based shareholders of Criimi Mae Inc. (NYSE:CMM - News) have offered to buy all of the real estate investment trust's issued and outstanding common shares for $7 apiece, a regulatory filing said Monday.
Lyle Weisman, Asher Gottesman and Len Fisch, who collectively hold about 686,500 shares, or 4.9 percent, of the Rockville, Maryland-based company, made the offer in a letter to the chairman of Criimi Mae, William Dockser, May 8.
The letter was attached to a Securities and Exchange Commission filing Monday.
The $7 per share offer is "fair" to shareholders and was about 49 percent higher than May 8's $4.70 per share closing price on the New York Stock Exchange, the letter noted.
Trading in the company's shares were halted Monday afternoon on the NYSE at $5.35, down 25 cents.
Criimi Mae, which emerged from bankruptcy protection in April 2001, has about 14 million shares outstanding as of May 7, 2002. Spokesman James Pastore said the board will review the offer and other strategic alternatives in accordance with its fiduciary duty to maximize shareholder value.
The SEC filing showed that Weisman and Gottesman most recently bought a total of 3,600 shares on May 8 for $3.80 each while Fisch purchased 18,000 shares the same day for $4 each.
They said in their letter they were willing to place a "good faith" deposit of $1 million with a mutually acceptable escrow holder upon the execution of a definitive agreement.
The trio are looking for a response from Criimi Mae by 5:30 p.m. PDT on Wednesday (0030 GMT Thursday). |
