The Real Deal New York

Reis rejects second hostile offer from CoStar Group

August 13, 2008 07:18PM
By David Jones

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Reis Inc., a New York-based provider of commercial real estate listings, said today that its board of directors rejected a second acquisition offer from rival CoStar Group.

CoStar again offered an all-cash price of $8.75 per share, and Reis again said it was inadequate.

Reis said it believes it would be better off by continuing to operate independently or by pursuing a more profitable sale of the company.

“It is extraordinarily disappointing that after our Board unequivocally rejected CoStar’s $8.75 proposal, CoStar has seen fit to come back with exactly the same proposal in a hostile fashion,” said Reis Chief Executive Lloyd Linford in a statement. “To judge the value of our company by the daily trading price of its relatively illiquid common stock makes no sense.

“We trust that our clear second rejection of CoStar’s offer will prompt CoStar to withdraw it.”

Bethesda, Md.-based CoStar Group, one of the nation’s largest providers of commercial real estate data, originally offered to buy Reis on June 5. 

CoStar resubmitted the offer on Tuesday, noting that Reis’s share price had dropped 20 percent since the original offer, making the new offer a 97 percent premium over Tuesday’s closing stock price of $4.44 a share.

Linford said the company would “review carefully any serious proposal from any responsible third party.”

Calls to CoStar were not immediately returned.

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