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Ladder Capital rejects Related’s merger bid

Mortgage REIT claims offer “undervalues” it

Ladder Capital Celebrating IPO on the NYSE on Feb. 6, 2014 (Credit: YouTube)
Ladder Capital Celebrating IPO on the NYSE on Feb. 6, 2014 (Credit: YouTube)

Ladder Capital rejected a takeover bid by an affiliate of Related Companies.

“After carefully reviewing the proposal, the Company’s board of directors has determined that the proposal undervalues the Company and has therefore respectfully declined the proposal as not being in the best interests of the Company or its shareholders,” Ladder’s CFO Marc Fox wrote in a filing with the Securities and Exchange Commission.

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Related Fund Management last week offered to take over the mortgage real estate investment trust for $15 per share. Related already owns 8.2 percent of Ladder’s shares and offered to buy the remainder, taking the public company private.

Ladder Capital is best known for lending millions to President Trump’s businesses. The company holds a $16 million leasehold mortgage on Trump’s 40 Wall Street and a $100 million mortgage on Trump Tower.

Ladder’s share price was down 0.54 percent Thursday morning, to $14.84. The company has a market cap of more than $1.6 billion and $5.9 billion in assets.

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