Wednesday, 26 November 2014
Last updated 22 min ago
Jan 17 2007 | 12:02pm ET
Hedge fund Farallon Capital Partners' offer of a $499 million recapitalization plan to prop up mall operator Mills Corp.—in which it holds an 11% stake—was rejected today in favor of a $1.35 billion buyout by Brookfield Asset Management.
The Farallon offer was one of two reportedly solicited by Chevy Chase, Md.-based Mills, which faces a March deadline to pay off a $1 billion loan it took out last year. The other was a $1.8 billion plan from Israeli real estate firm Gazit-Globe, which owns 9.7% of Mills.
San Francisco-based Farallon had set a Friday deadline for Mills to accept its offer. Under the plan, Farallon would have bought Mills shares at $20 a piece. In addition, the firm said it would not seek to oust Mills management, and would demand only two seats on a pared-down, 11-member board of directors, which would have to be “reasonably acceptable.”
“Any sale today would almost certainly be at a discount in order to compensate the buyer for abnormal conditions,” Farallon wrote in a Securities and Exchange Commission filing. The firm said it would not require financing to make the proposed additional investment.
Toronto-based Brookfield has agreed to pay $21 per share—$1 per share more than Farallon—to acquire Mills, which will be merged into a new Brookfield unit. Mills shareholders can either take the cash or up to a 20% stake in the new, publicly-traded company.
Nov 4 2014 | 9:45am ET
Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…
Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...