Group Seeks to Gain Control of Burnham Pacific

A group holding an 8.2% stake in San Diego-based shopping center owner Burnham Pacific Properties Inc. has offered to acquire control of the company, according to regulatory documents filed Monday.

The group, led by real estate investor Jay Schottenstein, currently holds 2.6 million common shares and seeks to acquire all shares of Burnham it does not already own for $13 a share in cash, the Securities and Exchange Commission filing said.

Burnham Pacific, a real estate investment trust with properties mostly in the western U.S., has almost 32 million shares outstanding.

In a letter to Burnham Pacific, the Schottenstein group proposed merging Burnham into an acquisition company, which would be the surviving corporation.

Simultaneously, a unit of the acquisition company would merge into Burnham Pacific Operating Partnership, and the surviving entity would be the Burnham Partnership, the letter in the SEC filing said.

Burnham Pacific said it is reviewing the offer. The company’s stock price was up $1.50 on Monday to close at $12.63 on the New York Stock Exchange.

Holdings of Schottenstein Stores include 60% of Value City Department Stores and 56% of American Eagle Outfitters clothing chain.