SAN FRANCISCO REAL ESTATE INVESTORS v. REAL ESTATE

Nos. 82-1853, 82-1865.

701 F.2d 1000 (1983)

SAN FRANCISCO REAL ESTATE INVESTORS, Plaintiff, Appellant, v. REAL ESTATE INVESTMENT TRUST OF AMERICA, et al., Defendants, Appellees. SAN FRANCISCO REAL ESTATE INVESTORS, Plaintiff, Appellee, v. REAL ESTATE INVESTMENT TRUST OF AMERICA, Defendant, Appellee. Unicorp American Corporation, et al., Defendants, Appellants.

United States Court of Appeals, First Circuit.

Decided March 9, 1983.


Attorney(s) appearing for the Case

Douglas M. Kraus, Cleveland, Ohio, with whom Dennis J. Drebsky, Charles M. Yablon, Skadden, Arps, Slate, Meagher & Flom, New York City, Earle C. Cooley, Jeffrey B. Rudman, Kenneth R. Berman, Thomas N. O'Connor, and Hale & Dorr, Boston, Mass., were on brief, for San Francisco Real Estate Investors.

Robert B. Mazur, New York City, with whom Louis J. Barash, Daniel N. Perlmutter, and Wachtell, Lipton, Rosen & Katz, New York City, were on brief, for Unicorp American Corp., et al.

Jacob H. Stillman, Associate Gen. Counsel, and David A. Sirignano, Sp. Counsel, Washington, D.C., were on brief for S.E.C., amicus curiae.

Don M. Kennedy, Boston, Mass., with whom James J. Dillon, James B. Farmer, Boston, Mass., Cerise H. Lim Epstein, Brookline, Mass., Frank D. Saylor, IV, Boston, Mass., Goodwin, Procter & Hoar, Boston, Mass. and Squire, Sanders & Dempsey, New York City, were on brief, for Real Estate Inv. Trust of America, et al.

Before COFFIN, Chief Judge, BOWNES and BREYER, Circuit Judges.


COFFIN, Chief Judge.

This appeal concerns a struggle for control of one large company by another through a tender offer. Both the target company and the bidder are real estate investment trusts (REITs), organized pursuant to 26 U.S.C. § 856 and subject to certain constraints1 and possessing the advantage of avoiding a separate income tax on the corporate entity, a single tax being paid by shareholders on their receipt of distributions...

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