Neuberger BM RE (NYSE:NRL)
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From Jul 2019 to Jul 2024
Neuberger Berman Real Estate Income Fund Inc. (NYSE:
NRL) announced today that its Board, after careful consideration, by
the unanimous vote of the directors present, voted to continue to
recommend that common stockholders reject the unsolicited tender offer
by a trust with which Stewart R. Horejsi is affiliated to purchase up
to 50% of the issued and outstanding shares of the Fund's common stock
at a price of $19.89 per share. The Board concluded that the offer
continues to represent a substantial threat to the Fund and its
stockholders and that the unsolicited, partial and hostile nature of
the offer and the plans for the Fund announced by the Horejsi Trust
were designed to coerce Fund stockholders to tender shares into the
offer on disadvantageous terms. The Board also considered the costs
the Fund has incurred in defending against the hostile tender offer,
including litigation costs from two lawsuits related to the tender
offer and the potential reimbursement of certain litigation costs by
the Fund's insurance carrier, and the impact of such costs on the
Fund's distributions, which, based on currently available information,
are being characterized as a return of capital. The Board concluded
that it was in the best interest of the Fund to continue to defend
against the hostile tender offer.
In addition, the Fund announced that its Board adopted a Rights
Agreement under which all common stockholders of record as of
September 9, 2005 will receive rights to purchase shares of the Fund's
common stock. Each right entitles the registered holder to purchase
from the Fund six shares of common stock at a price equal to the par
value of such shares. The rights will become exercisable 10 days
following a public announcement that a person or group of affiliated
or associated persons has acquired beneficial ownership of 11.5% or
more of the Fund's outstanding shares of common stock and will expire
by their own terms on December 30, 2005. The description and terms of
the rights are set forth in the Rights Agreement, which has been filed
with the Securities and Exchange Commission. The currently outstanding
rights, which were issued by the Fund on May 18, 2005 pursuant to a
rights agreement adopted by the Board on May 13, 2005, will expire by
their own terms on September 11, 2005.
Forward-Looking Statements
Statements made in this release that look forward in time involve
risks and uncertainties and are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
risks and uncertainties include, without limitation, the adverse
effect from a decline in the securities markets or a decline in the
Fund's performance, a general downturn in the economy, competition
from other funds, changes in government policy or regulation,
inability of the Fund's investment advisor to attract or retain key
employees, inability of the Fund's investment advisor to implement its
investment strategy, inability of the Fund to manage unforeseen costs
and other effects related to legal proceedings or investigations of
governmental and self-regulatory organizations.