Blackstone wins bidding contest with Vornado

• EOP press release 2.07.07
• EOP press release 2.09.07
• EOP news - stock chart
• Will take largest publicly-traded office REIT private
• Largest public-to-private deal ever

Bidding history

• Initial Blackstone proposal at $48.50 per EOP share 11.19.06

• $200mm break-up fee (1%)

• Competing $54 offer from Vornado-led group 1.17.07

• 60% cash, 40% VNO shares

• Blackstone raises its offer to $54.00 1.25.07

• Break-up fee increased to $500mm break-up fee (2.5%)

• Vornado raises its offer to $56.00 2.01.07

• 55% cash, 45% VNO shares

• EOP delayed putting Blackstone offer to shareholders2.02.07

• Vornado makes an alternative proposal 2.05.07 

• Offers to use a tender offer to accelerate its offer

• 55% @ $56.00 per share;
  45% in EOP stock in 2^nd step merger

• Blackstone raises its offer to $55.50 per share  2.06.07

• Break-up fee increased to $720mm break-up fee (3.0%)
• EOP financial advisor says that 3.0% break-up fee is
  in line with similar deals

• See Bidding History Detail below

• Includes links to related EDGAR-filed documents

Other developments

• Debt consent solicitation commenced 12.26.06
• Debt tenders commenced 12.26.06
• Shareholder meeting scheduled 12.27.06
• ISS recommends for increased Blackstone offer 1.28.07

Initial Blackstone offer announced 11.19.06

• $48.50 per EOP share
• $19B total; $36B, including assumed debt
• No financing condition
• Press release
• Form 8-K

• Background to the merger

Competing offer from Vornado-led group 1.17.07

• Consortium bid from

• Vornado Realty Trust  (VNO)
• Starwood Capital
• Walton Street
• $52.00 per EOP share
• 60% cash, 40% VNO shares
• $19B total; $36B, including assumed debt
• Consortium press release
• EOP press release
• Proposal letter
• EOP considers competing proposal 1.22.07

Blackstone raises its offer  1.25.07

• To $54.00 per EOP share
• Press release

• Update to Background of the Mergers
• Increase in merger consideration

• To $54.00 per share, from $48.50

• EOP increases break-up fee

• To $500mm from $200mm
• From 1.0% to 2.5%

Vornado raises its offer 2.01.07

• To $56 per EOP share: $31, plus Vornado stock
• Press release
• Proposal letter

EOP supports increased Blackstone offer 2.02.07

• Press release 

But will delay final consideration 2.02.07

• Proxy statement supplement

Vornado makes an alternative proposal 2.05.07 

• Offers to use a tender offer to accelerate its offer

• 55% @ $56.00 per share;
  45% in EOP stock in 2^nd step merger
• Is Vornado bid too little, too late?
• Was Blackstone played, after agreeing
  to only an initial 1% break-up fee

• Press release
• Proposal letter
• Slide presentation
• EOP press release

Blackstone raises its offer to $55.50 per share  2.06.07

• Press release

Deal closes with Blackstone 2.09.07

• Press release
• Form 8-K
• Form 25

Financial

• Blackstone: Goldman / Bank of America / Bear Stearns / Blackstone Corporate Advisory / Morgan Stanley
• EOP:  Merrill Lynch
• Vornado group: Lehman / JP Morgan / UBS

Legal

• Blackstone: Simpson Thacher
• EOP:  Sidley Austin
• Vornado group: Sullivan & Cromwell /  Wachtell

Merger agreement amendments

• Third amendment 2.05.07

Third supplement  2.06.07

Second supplement  2.02.07

Proxy statement supplement  1.29.07

• Table of contents
• Update to Background of the Mergers
• Increase in merger consideration

• To $54.00 per share, from $48.50

• Increase in break-up fee

• To $500mm from $200mm

Definitive proxy statement 12.29.06

• Table of contents

Preliminary proxy statement 12.14.06

• Table of contents

No shop covenant

• Merger agreement §7.4

• Proxy statement disclosure

Break-up fee

• $200mm, plus out-of-pocket expenses

• Agreement §9.3
• Proxy statement disclosure

• Increased to $500mm

• Proxy statement supplement

• Increased to $720mm

• Proxy statement supplement

HSR Act

• Merger agreement §7.7

• Proxy statement disclosure

Merrill Lynch fairness opinion

• Proxy statement disclosure

Disclosure

• Proxy statement disclosure

Real Estate Investment Trusts