DALLAS, July 6, 2000 (PRIMEZONE) -- American Realty Trust (NYSE:ARB) Thursday announced the mini-tender offer for the company's common shares being made by Mackenzie Patterson Inc. at $1.50 per share, less distributions, is 84 percent below recent market closing prices. American Realty Trust shares closed at $9.38 on July 3, 2000. American Realty recommends that its shareholders not participate in this mini-tender offer.
According to the Securities and Exchange Commission (SEC), mini-tender offers, which are for less than 5 percent of a company's stock, are not required to be registered with the SEC. The SEC recommends that investors scrutinize mini-tender offers carefully. These offers usually catch investors off guard, and investors later learn that they cannot withdraw from the offer and may end up selling their securities at below-market prices.
"Many shareholders and their brokers are unaware that the price offered in these mini-tenders is just a small fraction of the book value of these securities," said Phyllis Wolper, director of investor relations for American Realty Trust. "We urge every shareholder to confirm the current value of the security before agreeing to sell in these offers. In most cases, the shareholder would realize substantially more for their holdings by selling in the open market," said Wolper.
Dallas-based American Realty Trust, Inc. owns a diverse portfolio of properties located across the United States, as well as interests in mortgage loans and stock holdings in real estate related entities. For more information on the company, including the current stock price, go to the Investor Data page of its web site at
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