First Potomac Realty Trust To Be Bought In a $1.4 Billion Deal By Government Properties

By Tomi Kilgore Markets MarketWatch Pulse

First Potomac Realty Trust announced Wednesday an agreement to be acquired by Government Properties Income Trust in a deal valued at $1.4 billion, including debt. Under terms of the deal, First Potomac shareholders will receive $11.15 a share in cash for each First Potomac share they own, which is 1.8% below Tuesday's closing price of $11.35, but a 5.1% above the April 24 close of $10.61, which was the last trading day before media speculation of a potential sale of the real estate investment trust. The deal is expected to close before the end of the year. First Potomac's stock has gained 3.5% year to date through Tuesday, while Government Properties shares have rallied 15%. In comparison, the SPDR Real Estate Select Sector ETF has climbed 5.7% so far this year and the S&P 500 has tacked on 8.1%.

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