American Campus Communities Inc. received a letter from Land & Buildings Investment Management LLC "indicating its willingness to offer to acquire" the company for $57.00 per share.
The student housing real estate investment trust said that offer is lower than American Campus' recent record high of $57.29 apiece, calling it a "faux bid." It said Land & Buildings is "not a credible potential buyer," citing the activist shareholder's inability to fund or consummate a transaction and its recent actions.
American Campus said the hedge fund manager nominated its own employee Corey Lorinsky for election to the REIT's board in December 2021. Following a review, the board determined that Lorinsky would not be an additive member.
The hedge fund manager in January again issued a letter to American Campus demanding that Land & Buildings founder and Chief Investment Officer Jonathan Litt or Lorinsky be added to the REIT's board.
While American Campus and its advisers will continue to engage with Land & Buildings, the company said it is "preparing for the costly and distracting proxy contest" started by the activist shareholder.
BofA Securities and Dentons US LLP are, respectively, the REIT's financial adviser and legal counsel.