You may recall that in my previous article on W.P. Carey (NYSE:WPC), I explained:
“it is likely that CPA:17 will liquidate in the near term. The $5 billion portfolio (CPA:17) was established in 2007, and it is nearing its life-cycle as a non-traded REIT... I believe it's highly likely that CPA:17 will eventually merge with Carey's public REIT... I view this unique platform as an asset and catalyst going forward.”
Boom!
Today, WPC announced that its board approved a merger pact in which CPA:17 will merge with a subsidiary of WPC in a stock-for-stock transaction valued at $6 billion. CPA:17 stockholders will get a fixed exchange ratio of 0.160 of W.P. Carey shares for each CPA:17 share - about $10.72 per share, based on WPC's closing price of $67.03 on Friday.
