American Realty Capital Properties is in discussions to acquire NorthStar Realty Finance, according to multiple reports.
The two parties are in talks over an offer of $20 per share. The potential cash and stock deal would value the company at more than $6 billion, the Financial Times first reported.
The offer represents an approximately 25 percent premium to NorthStar’s closing price last week. The real estate investment trust’s share price has risen nearly 10 percent today to $17.59, as of 11:37 a.m. this morning.
The deal would be the second major acquisition by American Realty Capital Properties in the past six month. In October, the REIT agreed to acquire Cole Real Estate Investments.
NorthStar Realty Finance originates, acquires and manages portfolios of commercial real estate debt, commercial real estate and net-lease properties.
Both companies declined the Financial Times’ requests for comment.
Update: Both American Realty Capital Properties and NorthStar Realty Finance have denied the companies are in talks over a merger. Click here to learn more.