logo
Share SHARE
FONT-SIZE Plus   Neg

Ackman Drops Call For Sale Of General Growth, Sells Warrants

Activist investor William Ackman has sold some of his holdings in mall owner General Growth Properties Inc. (GGP) as part of a deal to drop calls for the company to explore a sale of itself.

In a regulatory filing on Thursday, Ackman's hedge fund Pershing Square Capital Management LP said it sold GGP warrants to Brookfield Asset Management Inc. (BAM, BAM_A.TO), GGP's largest shareholder, for $271.88 million.

Pershing Square, GGP's second-largest shareholder, also agreed to limit its stake in the company to no more than 9.9 percent for the next four years and be a "passive" shareholder. Meanwhile, Brookfield agreed to limits on its ownership of GGP at 40 percent.

In August, Pershing Square urged GGP's board of directors to consider a sale of the company in order to maximize shareholder value. Pershing Square noted that GGP's larger rival Simon Property Group Inc. (SPG) and Brookfield had both expressed interest in a takeover of the company.

Simon Property is the biggest owner of shopping malls in the U.S., while GGP is the second-largest U.S. mall owner. Brookfield is a Canadian alternative asset manager.

At that time, Pershing Square said it had discussed a takeover of GGP with Simon Property, but Brookfield did not support the deal and instead indicated it would seek to acquire GGP on its own. Further, Pershing Square noted that Brookfield's high degree of ownership and board representation in GGP gave it "enormous influence" over the company.

"This is particularly true in light of the fact that Simon, currently the most likely buyer of the company, is not being provided access to inside information, and has been effectively handcuffed and gagged from considering or proposing a transaction for which it needs no financing," Pershing Square had said.

GGP filed for bankruptcy in 2009 after it was unable to finance a huge debt load of $27 billion in the wake of the financial crisis. The company exited bankruptcy protection in November 2010.

GGP closed Thursday's trading at $19.46, down $0.59 or 2.94 percent on a volume of 20.04 million shares.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Google's artificial intelligence or AI player AlphaGo defeated world's number one Go player Ke Jie of China. Go is an ancient Chinese board game, harder than chess. In a fresh crackdown on Uber, Hong Kong police have arrested 21 drivers of the ride-hailing service for illegally carrying passengers without proper permits in the Asian city. The drivers, 20 men and one woman between the ages of 21 and 59, were arrested in an undercover operation by the police for illegally carrying passengers for hire without proper vehicle hire permits. Online retail giant Amazon.com has given out more than 1.7 million free bananas at its Community Banana Stands in downtown Seattle, altering local banana sales, the Wall Street Journal reported. The company, which opened its first Community Banana Stand in late 2015 with idea from founder and CEO Jeff Bezos, has installed two banana stands at its Seattle headquarters.
comments powered by Disqus
Follow RTT