Why Bluerock Residential Growth Rocketed as Much as 78% Higher at the Open Today
Shares of real estate investment trust (REIT) Bluerock Residential Growth (NYSEMKT: BRG) took off at the open of trading on Dec. 20, rising as much as 78% at one point in the first half hour of the day. That gain is likely to be fairly sticky, as the rise is related to an acquisition offer from a real estate business owned by Blackstone (NYSE: BX). For reference, Blackstone was down a couple of percentage points, though that likely had more to do with the market's broader declines than this rather complicated deal.
The first piece of this acquisition is fairly easy to understand. Blackstone will pay $24.25 per share in cash for each share of Bluerock Residential. That's a tidy 124% premium over where Bluerock Residential's shares traded on Sept. 15, before the fact that the two companies were talking hit the newswires. Blackstone will basically be acquiring all of Bluerock's 30 apartment assets and loans on 24 additional multi-family properties. Now for the complicated part.
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Source Fool.com
