Business

Winnipeg Free Press - PRINT EDITION

Investor's letter stirs General Growth, Brookfield rumours

By: LuAnn LaSalle

Posted: 08/25/2012 1:00 AM | Comments: 0

U.S. activist investor Bill Ackman could end up selling his stake in General Growth Properties to Toronto's Brookfield Asset Management Inc., the largest shareholder of the American mall owner that's at the centre of a dispute between the two investors, a retail expert said Friday.

Ackman could be "stirring up the pot" with his letter asking General Growth's board to form a special committee -- independent of Brookfield directors -- to look at selling the company, said Howard Davidowitz of Davidowitz & Associates, Inc. in New York.

Ackman's request could lead to an offer to buy out Pershing's 10.2 per cent stake in Chicago-based General Growth and the top candidate is Brookfield, Davidowitz said.

"Brookfield, they're perfect to buy him out," said Davidowitz, chairman of the New York retail consulting and investment banking firm.

"They're the No. 1 candidate," he said of Brookfield, which owns 42.2 per cent of General Growth.

In the letter filed Thursday, Ackman's Pershing Square Capital alleges Brookfield rebuffed a takeover offer from Simon Property Group last year that came with a 65 per cent premium in favour of taking over the company itself -- though no offer has been forthcoming.

Brookfield, which manages a range of utility, infrastructure and real estate assets, refutes those allegations, saying it has no intentions to either buy GGP, nor sell its existing stake. It has said it's not taking any steps to acquire GGP nor is it having any discussions with third parties in that regard.

-- The Canadian Press

Republished from the Winnipeg Free Press print edition August 25, 2012 B8

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories? Please use the form below and let us know.

* Required

In which story did you find the error? *
Please post the headline of the story or the title of the video with the error.
What was the error? *
Please post exactly what was wrong with the story.
What should we have written?
Please indicate your source for the correct information.
Who else should we interview to improve this story?
Please include any contact information you may have.
Can we contact you in the future for advice on stories about this topic?
Yes

No
First Name: *
Last Name: *
E–mail Address: *
This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.
Phone: *
This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.
Colour:
Are you blue? If you can see this, leave it blank and get some CSS support.
Enter the words that you see: * This is to prevent our forms from being filled out automatically.
You have failed to correctly identify the words in the box above. Please try again.

More Business

Undock

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.