Gramercy Property Trust Inc (NYSE:GPT) Investor Filed Against Acquisition By Chambers Street Properties

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Company Name(s): 
Gramercy Property Trust
Case Name: 
Gramercy Property Trust Deal Case 07/31/2015
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: GPT
Lawsuit Overview
Type of Lawsuit: 
Mergers and Acquisition
Date Filed: 
07/31/2015
Summary: 

August 3, 2015 (Shareholders Foundation) - An investor who currently holds shares of Gramercy Property Trust Inc (NYSE:GPT), filed a lawsuit in effort to halt the proposed takeover of Gramercy Property Trust Inc by Chambers Street Properties for a value of approximately $25.36 per share.

The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:GPT stockholders by agreeing to sell Gramercy Property Trust Inc too cheaply via an unfair process to Chambers Street Properties.

On July 1, 2015, Chambers Street Properties (NYSE:CSG) and New York based Gramercy Property Trust Inc. (NYSE:GPT) announced that they have entered into an agreement to merge with an expected enterprise value of approximately $5.7 billion. Under the terms of the agreement, Gramercy shareholders will receive 3.1898 shares of Chambers Street for each share of Gramercy common stock they own. Based on a closing price of $7.95 per NYSE:CSG share on June 30, 2015 shareholders of Gramercy Property Trust Inc. (NYSE:GPT) will receive a value of approximately $25.36 per share.

However, the plaintiff claims that the proposed consideration NYSE:GPT shareholders will receive is grossly inadequate and undervalues Gramercy Property Trust Inc. Indeed, at least one analyst has set the high target price for NYSE:GPT shares at $34 per share and NYSE:GPT shares traded on the open market as recently as April 2015 as high as $28.60 per share. Gramercy Property Trust Inc reported that its annual Total Revenue rose from $56.70 million in 2013 to $107.94 million in 2014. In addition, the plaintiff claims that the process is also unfair to NYSE:GPT stockholders.