Shareholders of Pan Pacific Retail Properties Inc. voted to approve its proposed acquisition by Kimco Realty Corp. for $70 per share.
The deal is slated to close at the end of October and seems to be cleared to go ahead despite a class action suit that was filed on behalf of Pan Pacific shareholders by Jack G. Blaz, a Dallas-based shareholder representing an entity called Momentum Partners. The suit charges both Kimco and Pan Pacific with a breach of fiduciary duties and self-dealing on the part of Pan Pacific's senior management.
When the deal was announced, some analysts interpreted the valuation as an indication that investors were losing their ardor for the retail sector. But, as some analysts pointed out, Pan Pacific's stock had rallied in the days before the deal was announced, as rumors spread that Kimco was on the verge of announcing a major acquisition; Pan Pacific was frequently mentioned as a target. The deal price, in fact, is about 7 percent above where Pan Pacific traded before the weeklong run-up.