Saturday, 23 August 2014
Last updated 13 hours ago
Feb 11 2014 | 11:37am ET
Pershing Square Capital Management has exited another long-term retail investment, an area that firm founder William Ackman acknowledged last year "has not been our strong suit."
The New York-based hedge fund has sold its remaining stake in mall owner General Growth Properties, the latter said. General Growth announced that it had repurchased the shares for about $556 million, a 3.4% discount to the stock's closing price on Monday.
Pershing Square had unloaded the first half of its formerly 8% stake in General Growth in September.
The hedge fund led a reorganization of General Growth in 2010 with Brookfield Asset Management. The relationship between the two soured soon thereafter, as Brookfield continued to boost its stake in General Growth, and as Pershing Square called for a sale of the company, which was opposed by Brookfield.
Ackman has championed a sale to General Growth rival Simon Property Group. The Wall Street Journal reports that he's abandoning that effort because talks between the two companies are not progressing.
Still, unlike its August sale of its huge J.C. Penney Co. stake, which cost Pershing Square nearly half a billion dollars, the hedge fund is up—way up—on its General Growth investment. Pershing Square paid just $60 million for its stake in the company.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note