Equity Office Properties (NYSE:EOP) could receive a higher bid from Cerberus Capital Management, according to reports from the Financial Times. Just when we thought that the company's $36 billion deal with Blackstone was written in stone, there is now speculation that Barry Sternlicht of Starwood Capital Group Global LLC, Neil Bluhm of Walton Street Capital, and Cerberus Capital Management could top their offer. While it is highly unusual for private equity firms to compete over such a takeover, the stakes in this deal are high with Class A properties expected to perform extremely well in the future. EOP's strong existing capacity, along with new regulations making it more difficult to build new capacity, make this deal important for players in the commercial real estate market.

Despite a $200 million termination fee and Blackstone matching rights, shareholders are already anticipating higher bids as its shares are trading at $49.30 - above Blackstone's $48.50 buyout price. Regardless, this is definitely a stock to keep an eye on as this situation unfolds.

Related Companies
Reckson Associates Realty (RA)
Highwoods Properties, Inc. (HIW)
American Financial Realty Trust (AFR)