Tower Says It Will Sue 2 REITS

Tower Realty Trust Inc. said it intends to sue Crescent Real Estate Equities Co. and Reckson Associates Realty Trust Inc. for canceling their $734-million purchase of the company. Crescent and Reckson, two aggressive real estate investment trusts said in July that they would buy Tower and enter into the New York City real estate market, maintained that they were still interested in the office real estate firm as long as Tower abided by terms of the July 9 agreement. They called Tower’s lawsuit threat “baseless.” New York-based Tower said it plans to seek $75 million in its suit for what it called a “willful breach of the merger agreement.” Fort Worth-based Crescent and Melville, N.Y.-based Reckson said they agreed to buy Tower after the company said it would address certain tax issues. They said Tower may not have addressed those issues but they would stand by the merger if Tower complied with its terms. Shares of Tower shares fell $2.31 to close at $17.93. Its shares have decreased 24.4% in value since the merger agreement was announced. Reckson rose 18 cents to close at $22.87, and Crescent closed unchanged at $25.06. All trade on the NYSE.