American Realty Capital Properties Inc. is buying fellow real estate investment trust CapLease in a deal that the companies valued at about $2.2 billion. New York-based American Realty will pay $8.50 for each share of CapLease's outstanding common stock. The price represents a 20 percent premium over the company's Friday closing stock price. In addition, each share of CapLease's preferred stock will be converted into the right to receive $25 in cash plus the equivalent of dividends. American Realty also will assume about $580 million of CapLease's $1.2 billion in debt and repay the rest.
Kellogg agrees to settle lawsuit
Kellogg has agreed to pay $4 million to settle a class-action lawsuit over the marketing claims it made for Frosted Mini-Wheats. The company, which also makes Frosted Flakes, Eggo waffles and Pop Tarts, was sued for saying that the cereal improved children's attentiveness, memory and other cognitive functions. Kellogg said in a statement that the ad campaign in question ran about four years ago and that it has since adjusted its messaging to incorporate guidelines set by the Federal Trade Commission. The company, based in Battle Creek, Mich., also noted that “has a long history of responsible advertising.”
Teamsters union aims to force election
The Teamsters union is stepping up its campaign to unseat other unions in the airline industry. Teamsters officials said Tuesday that they filed a petition with a federal labor agency to force an election against the Transport Workers Union to represent mechanics at American Airlines. The Teamsters union is also seeking to represent mechanics at US Airways, who are currently represented by the machinists' union. The outcome of both elections will determine which union will negotiate with the world's biggest airline. American and US Airways expect to close their merger deal in the next few months and create a carrier larger than industry leader United Airlines.
Fidelity National is buying lender
Fidelity National Financial Inc. is buying Lender Processing Services Inc. for about $2.82 billion in order to broaden and diversify its business. Lender Processing is a Jacksonville, Fla.-based technology company that services the mortgage and real estate industries. Fidelity National will pay $33.25 per share, a 1 percent premium to Lender Processing's Friday closing price of $32.89. The companies put the cash-and-stock deal's total equity value at approximately $2.9 billion. Lender Processing currently has about 84.9 million outstanding shares, according to FactSet.