Blackstone's deal: Biggest LBO ever

Blackstone's agreement to buy real estate investment firm Equity Office Properties Trust for $36 billion will likely be the largest leveraged buyout in history. We've been saying for a while now that some monster deals were all but guaranteed. This one bests the $33 billion deal for H.C.A. Equity Office that was created by Sam Zell and had hit some speed bumps recently. Blackstone was hungry for more real estate and the fit was right. Now if buyout firms start going after REITs, that could well be the answer to those who have been wondering about the next font of business. Jonathan Gray and Chad Pike, Blackstone's real estate chiefs, have made the buyout firm the largest owner of domestic real estate. Today's issue of FierceFinance will seem like a private equity special edition. These guys are breaking new ground in so many ways these days.

For more on the deal:
- Here's the New York Times article