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Paramount Board Rejects Bid from Bow Street
Shares of Paramount Group traded higher on Tuesday after the Midtown Manhattan-based REIT said its board of directors had rejected an unsolicited bid from investor group Bow Street LLC. The Nov. 4 offer from Bow Street set a price range between $9.50 and $10 per share.
“While we are pleased Bow Street recognizes that Paramount’s value significantly exceeds the value implied by current trading prices, the board determined that Bow Street’s proposal is wholly inadequate, opportunistic in its timing and significantly undervalues the company and its compelling prospects for long-term value creation,” said CEO Albert Behler.
In weighing Bow Street’s bid, the Paramount board considered the company’s successful recent portfolio transformation and the “outsized but temporary impact” of the COVID-19 pandemic. The board also noted that Paramount’s stock price has increased by approximately 40% since news of promising COVID-19 vaccine candidates was first announced on Nov. 9.
Pictured: Paramount headquarters at 1633 Broadway.
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