
Dow Jones reported late on Tuesday that in recent months the New York-based commercial landlord also has discussed spinning off its strip malls into a separate company. Vornado then would merge the business with San Diego-based Retail Opportunity Investments Corp. (NASDAQ: ROIC), according to people familiar with the situation. And Vornado would avoid a large tax payment if shareholders take a majority stake in the combined company instead of cash.
Nothing is certain thus far, and talks are ongoing. Chairman and Chief Executive Steven Roth has a reputation for being deliberative, sometimes taking years to pull the trigger on big deals. Vornado also reportedly is studying other scenarios for the business. The company has tapped Morgan Stanley and Goldman Sachs as advisers.