DALLAS, Oct. 30, 2001 (PRIMEZONE) -- Transcontinental Realty Investors, Inc. (NYSE:TCI) announced Tuesday that its Board of Directors and President have not engaged in any conversation or negotiation with Sutter Capital Management, LLC or any other outside group for TCI to sell its outstanding shares of Income Opportunity Realty Investors, Inc. (AMEX:IOT) to Sutter and has no intentions of participating in the current offer from Sutter and has no opinion of the validity of the offer.
Transcontinental, American Realty Investors, Inc. (NYSE:ARL), and Basic Capital Management, Inc. (Basic Capital), the advisor to TCI, ARL and IOT, collectively own 59.9 percent of the outstanding common stock of Income Opportunity Realty Investors, Inc.
On October 23, 2001, American Realty Investors, Inc. announced a preliminary agreement to acquire all the outstanding shares of Income Opportunity Realty and Transcontinental Realty for cash. Under the terms of the proposed agreement, ARL will offer each nonaffiliated Transcontinental Realty and Income Opportunity stockholder a cash payment for their TCI and IOT common shares. Such stockholders will have the option to exchange their shares for ARL preferred stock in lieu of receiving the cash payment. ARL will pay $17.50 per TCI share and $19.00 per IOT share for the stock held by non-affiliated stockholders.
Transcontinental Realty Investors, Inc., a Dallas-based real estate investment company, invests in real estate through direct equity ownership and partnerships nationwide. TCI also invests in mortgage loans, including first, wraparound and junior mortgages. For more information, visit the company's Web site at www.transconrealty-invest.com.