Equity Office Properties Agrees
To Revised Blackstone Bid

Equity Office Properties Trust has agreed to an amended $22.3 billion takeover offer from Blackstone Group, which is boosting its original bid by 11% and trumping a rival $21.5 billion offer from a group led by Vornado Realty Trust.

Blackstone's $54 a share offer is a 3.8% premium to Vornado's $52 bid, which trumped Blackstone's original proposal of $48.50. If Equity Office ultimately backs out of its revised deal with Blackstone, the termination fee is now $500 million, up from the original agreement's $200 million.

Equity Office said it has been meeting with officials from the rival bidding group and have been providing them with financial information. Equity Office has set a Jan. 31 deadline for another bid from the Vornado group, which also includes fellow real-estate firms Starwood Capital and Walton Street Capital.

Besides the higher bid, Equity Office said its board determined the Blackstone bid is more attractive because it is all cash, as opposed to Vornado's offer of 60% stock and 40% cash. A shareholder vote on the Blackstone deal is still scheduled for Feb. 5.

In premarket trading, shares of Equity Office jumped above Blackstone's raised bid to $54.40, compare with Wednesday's close of $52.70.

Equity Office is the nation's largest owner and operator of office buildings. As of Sept. 30, it fully or partially owned 585 office buildings in 16 states and the District of Columbia.

Email your comments to rjeditor@dowjones.com.