First Union withdraws attempts to block Sizeler Property direct placement

By Sheri Kasprzak

Atlanta, March 23 - First Union Real Estate Equity & Mortgage Investments said it has pulled its attempts to block Sizeler Property Investors Inc.'s $28.47 million direct placement.

First Union has said in previous statements that its management believes Sizeler under-priced the offering and announced Tuesday that it is considering moves to force Sizeler to liquidate or sell non-core assets.

First Union has also increased its ownership of Sizeler to 8.73%.

Sizeler has filed a lawsuit in federal district court against First Union alleging First Union made false statements with regard to the direct placement, which closed March 15, and alleging that the company is increasing its stake in Sizeler in an attempt to destabilize the company.

On Wednesday, Sizeler's stock closed up $0.02 at $12.04.

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