DALLAS, Nov. 1, 2001 (PRIMEZONE) -- Income Opportunity Realty Investors, Inc. (AMEX:IOT) announced Thursday that neither its Board of Directors nor President have engaged in any conversation or negotiations with Sutter Capital Management, LLC and have not received an increased offer from Sutter to buy the outstanding shares of IOT.
IOT does not have sufficient information on Sutter or its intentions to adequately analyze Sutter's non-binding offer, which was delivered to IOT on Oct. 31, 2001. IOT President Karl Blaha states that neither he nor the IOT Board received the increased offer from Sutter. Blaha, who also serves as president of American Realty Investors, Inc. (NYSE:ARL), Transcontinental Realty Investors, Inc. (NYSE:TCI) and Basic Capital Management, Inc. (privately held advisor to IOT, ARL and TCI), states that ARL, TCI and BCM have no intention of selling any of their collective 59.9 percent of IOT's outstanding common stock pursuant to this offer. In addition, IOT has not received copies of any filings by Sutter with the Securities and Exchange Commission in connection with its Oct. 30 offer or the increased offer.
Blaha urges caution, saying, "All shareholders should carefully consider all terms and conditions of any offer made by any group to purchase IOT shares." Blaha noted that according to two news releases issued by Sutter on Oct. 30 and Nov. 1, the purported offers provide no cash payment for the purchase of the IOT shares for 10 years.
In late October 2001, American Realty Investors announced a preliminary agreement to acquire all the outstanding shares of IOT and TCI held by nonaffiliated stockholders for a cash payment of $19.00 per share for IOT shares and $17.50 per share for TCI common shares. Such stockholders also will have the option to exchange their shares for ARL preferred stock in lieu of the cash payment.
Income Opportunity Realty Investors, Inc. is a Dallas-based real estate investment trust. IOT primarily invests in equity interests in real estate through direct ownership and partnerships. For more information, go to the company's Website at www.incomeopp-realty.com.