GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Bill Ackman Sells Warrants to Brookfield

January 03, 2013 | About:
matsandalex

matsandalex

9 followers
Bill Ackman, activist hedge fund manager at Pershing Square has reportedly buried the hatchet in his dispute with Brookfield Properties over his investment in General Growth Properties (GGP).

"Mr. Ackman's hedge fund, Pershing Square, is selling warrants that carry the right to buy more than 18.4-million shares of General Growth Properties Inc. to Brookfield for about $271.9-million. Mr. Ackman, a well-known activist investor, still owns nearly 8 per cent of General Growth Properties, but has agreed for the next four years to limits on its ownership level and ability to team up with others to push for change."

Previously, Ackman was pushing for a sale of General Growth to Simon Property Group. However, Ackman felt that Brookfield was stopping the deal.

“A Simon merger is substantially superior to General Growth remaining independent,” he said in the presentation, adding that “without the Brookfield guys in the room, this company should be sold.”

“Brookfield would like to prevent a Simon merger because if were to occur, Brookfield would not be able to form and spin off Brookfield Property Partners LP,” Ackman continued.

Both Pershing Square and Brookfield have agreed to cap their percentage stakes in General Growth. Ackman has agreed to not substantially increase his 8% stake, and Brookfield has agreed to cap its percentage ownership at 45%.

The stock was down 3.2% on the news of Ackman's settlement.


Rating: 1.8/5 (4 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide