On Monday Annaly Capital Management, Inc. ( NLY
) announced that it has put forth a proposal to acquire CreXus
Investment Corp ( CXS ).
The proposal states that Annaly would purchase with cash the
remaining outstanding stock of CreXus that is does not already own.
Annaly currently owns about 12.4% (9.5 million) of the 76.6 million
outstanding shares of common stock of CreXus.
Annaly would pay $12.50 per share in the deal. That is a +12.6%
premium on the $11.10 share price that CXS closed at on Friday.
The potential acquisition has been made as Annaly seeks to
diversify its investments.
"While we remain committed to the agency market, given the
current environment, we believe it is prudent to diversify a
portion of our investment portfolio," Annaly Chief Executive
Wellington Denahan said. "Therefore, we may allocate up to 25% of
our shareholders' equity to real estate assets other than agency
The deal has only been put forth to the Board of Directors of
CreXus and is still subject to approval.
Annaly shares were up 8 cents, or +0.53%, in premarket trading
on Monday. CreXus shares were up $1.45, or +13.06%.
Annaly Capital Management, Inc. ( NLY ) is
not recommended at this time, holding a Dividend.com DARS™ Rating
of 3.3 out of 5 stars. CreXus Investment Corp (
CXS ) is not recommended at this time, holding a
Dividend.com DARS™ Rating of 3.1 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well
as a detailed explanation of our ratings system here .