Third Point Offers Veiled Warning To REIT

Jul 8 2008 | 9:15am ET

By Daniel Loeb’s standards, activist hedge fund Third Point’s regulatory filing on Maguire Properties was quite mild. But it cannot have made management at the Los Angeles-based real estate investment trust especially happy.

The New York-based hedge fund, which owns a 8.8% stake in Maguire, expressed its concern about a third party’s offer for Maguire falling by the wayside, and warning that it might not support the board if it does not act to maximize shareholder value.

“While a board of directors certainly has the right to determine whether it wants to sell the company it oversees, shareholders have the right to choose a board of directors whose interests are aligned with their own,” Third Point said in the filing.

Maguire has said it continues to consider strategic alternatives for the company, but has ruled out a sale in the current credit market.

Third Point said a third party had offered $20 per share, or about $960 million, for Maguire, but later withdrew the offer. The hedge fund said that offer could be converted into a “fully-financed, unconditional” offer if Maguire followed certain steps.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of