Blackstone wins Equity Office battle

NEW YORK (CNNMoney.com) -- Equity Office shareholders approved a $23 billion takeover offer by Blackstone Group Wednesday, ending a bitter takeover battle for the nation's largest owner of office buildings.

More than 92 percent of the total shares that voted were in favor of the deal, Equity Office said in a statement Wednesday, adding the deal is expected to be completed as early as Friday.

Blackstone will pay $55.50 a share in cash for Equity Office, a more than 14 percent premium to the bid it originally made for real estate investment trust late last year. Including debt, the deal is valued at $39 billion, making it the largest buyout ever.

Blackstone Group had been locked in a battle with New York-based Vornado for Equity Office (Charts), the Chicago real estate firm that owns nearly 600 properties across the country and is headed by legendary real estate investor Sam Zell.

Vornado dropped its $23 billion bid for the real estate investment trust just a few hours before Equity Office shareholders voted on the Blackstone deal.

Vornado (Charts) said in a statement Wednesday that "the premium it would have to pay to top Blackstone's latest bid, protected by a twice increased breakup fee, would not be in its shareholders' interest."

Blackstone on Tuesday sweetened its all-cash bid for Equity Office to $55.50 a share, rivaling Vornado's $56 a share cash-and-stock offer.

Equity Office's board backed Blackstone's deal, partly because it could close earlier than the Vornado bid, which could have taken as long as four to six months, the board said.

Equity Office initially agreed to be taken private by Blackstone last November, but the battle over Zell's firm escalated dramatically once Vornado joined the bidding in January.

Shares of Equity Office fell 1 percent in midday trading while Vornado shares jumped about 6 percent.

Zell reported to eye bid for Tribune Co.