Tishman Speyer and Lehman Brothers are buying real estate investment trust Archstone-Smith in a $22.2 billion deal, including outstanding debt. The two firms will acquire all of Archstone-Smiths common stock for $60.75 per share. All preferred shares will be redeemed at $100,000 per share plus unpaid dividends through the closing date of the merger or converted into preferred shares of the surviving entity, Archstone-Smith Operating Trust. The company will be a publicly traded firm.
The Archstone-Smith board of trustees unanimously approved the transaction, which is expected to close in the third quarter.
R. Scot Sellers, chairman and CEO, will continue to work for the new firm, but his exact duties and title have not been determined, according to Rick Matthews, Tishman Speyer spokesman.