Tuesday, 21 October 2014
Last updated 2 hours 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.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...