Gramercy as a takeout candidate • 5:38 PM
•Zigging higher while the rest of the triple-net-lease sector zagged lower today was Gramercy Property Trust (GPT +1.3%). Chris DeMuth - arguably the hammer on the stock - and REIT expert Brad Thomas riff on the possibility of American Realty Capital Properties (ARCP) eyeing up Gramercy as its next target once the Cole acquisition closes early next year.
•ARCP Chairman Nicholas Schorsch is a friend of Gramercy CEO Gordon DuGan has tried to hire him in the past, writes DeMuth, and DuGan skills would make an excellent CEO of ARCP. Looking at comparable deals, an appropriate price would be around $7.50-$8.50 per share (vs. today's close of $4.57), and Gramercy would likely push for more.