M&A Mash-Up: AT&T Inc. and Chambers Street Properties

AT&T Inc. (NYSE:T) has barely budged today, while Chambers Street Properties (NYSE:CSG) is diving

by Alex Eppstein

Published on Jul 1, 2015 at 11:39 AM
Updated on Jun 24, 2020 at 10:16 AM

A number of companies are making M&A headlines today, including telecom titan AT&T Inc. (NYSE:T) and real estate investment trust (REIT) Chambers Street Properties (NYSE:CSG). Here's a quick look at the relevant news, its impact on the respective stocks, and how Wall Street may be reacting.

Kicking things off, T's $48.5 billion buyout offer of DIRECTV (NASDAQ:DTV) is expected to receive regulatory approval next week. However, the impact on the former stock has been negligible, as it's currently in line with Tuesday's close at $35.52 -- though DTV is 1.1% higher at $93.83. Longer term, T sports a 5.7% year-to-date advance, but is on the verge of closing below its 10-day moving average for the first time since June 16.

Options traders are likely hoping AT&T Inc. (NYSE:T) will make a more decisive move south. During the last 50 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity has amassed a put/call volume ratio of 1.43 -- in the 83rd percentile. The same goes for short sellers. Nearly 311 million T shares are sold short, which would take two weeks to buy back, at the stock's average daily trading level.

Elsewhere on the M&A front, CSG announced plans to purchase fellow REIT Gramercy Property Trust Inc (NYSE:GPT), in an all-stock deal worth nearly $6 billion. Traders are panning the move, with CSG down 8.3% at $7.29, and fresh off a new annual low of $7.16. GPT is also struggling, shedding 2.5% at $22.80.

Chambers Street Properties' (NYSE:CSG) sell-off is rewarding a recent horde of short sellers. During the two most recent reporting periods, short interest spiked over 31%. Analysts have displayed skepticism toward the shares as well, doling out four "holds" versus two "strong buys."

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