Robbins LLP: Acquisition of BioMed Realty Trust Inc. (BMR) by The Blackstone Group L.P. (BX) May Not Be in Shareholders’ Best Interests
October 8, 2015 (San Diego, CA) – Robbins LLP is investigating the proposed acquisition of BioMed Realty Trust Inc. (NYSE: BMR) by The Blackstone Group L.P. (NYSE: BX). On October 8, 2015, the two companies announced the signing of a definitive merger agreement pursuant to which The Blackstone Group will acquire BioMed. Under the terms of the agreement, BioMed shareholders will receive $23.75 in cash for each share of BioMed common stock.
Is the Proposed Acquisition Best for BioMed and Its Shareholders?
Robbins LLP’s investigation focuses on whether the board of directors at BioMed is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
The $23.75 merger consideration is below the target price of $24.00 set by three separate analysts – Cowen on May 14, 2015, Robert Baird on May 12, 2015, and Morgan Stanley on February 5, 2015. In the last three years, BioMed traded as high as $25.11 on January 27, 2015, and most recently traded above the merger consideration – at $24.17 – on February 5, 2015.
On July 28, 2015, BioMed reported strong earnings results for its second quarter 2015. Net income for the quarter was $37.6 million, an increase of 97% compared to the second quarter of 2015. Additionally, BioMed has beat consensus analyst estimates for adjusted net income and adjusted EPS in three of the last four quarters. In commenting on these results, BioMed Chief Financial Officer Greg Lubushkin remarked, “The combination of extraordinary leasing success and value creation from strategic investments throughout the past few quarters generated strong top and bottom line results for the second quarter and first half of 2015. Equally important is that we are successfully expanding the platform for our future growth by reinvesting proceeds from strategic asset recycling and direct investments in the robust life science industry into worldclass laboratory and office facilities in the core centers of life science innovation, in particular Boston/Cambridge, the San Francisco Bay Area and San Diego. These growth opportunities are, and will continue to be, funded by a sound, proactively managed capital structure, which was further validated during the quarter with the upgrade to our investment grade corporate credit rating from Moody’s.”
In light of these facts, Robbins LLP is examining BioMed’s board of directors’ decision to sell the company now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
BioMed shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information.
BioMed shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.