Forest City’s former CEO Albert Ratner opposes the Brookfield deal

It’s the wrong price and wrong timing, he said

National /
Oct.October 26, 2018 08:39 AM

From left: Brookfield CEO Brian Kingston and Forest City Realty Trust’s former CEO Albert Ratner (Credit: Global Cleveland)

Forest City Realty Trust’s former CEO plans to vote against the Brookfield Asset Management acquisition, claiming the stock was undervalued and the acquisition process shoddy.

In an open letter, Albert Ratner, who controls nearly 1 percent of Forest City’s stock, argued the $6.8 billion deal has the wrong price and wrong timing, the Wall Street Journal reported. Ratner argued it “resulted from a flawed process” and Forest City could have a higher value by waiting 26 months to sell.

The opposition comes ahead of the Nov. 15 vote. The board has narrowly endorsed it in a 7-to-5 vote.

Brookfield agreed in July to buy Forest City for $25.35 a share, or $11.4 billion including Forest City’s debt. That was a 26.6 percent premium to Forest City’s stock price, the report said.

The deal was part of a series of changes for Forest City this year. In January, MaryAnne Gilmartin stepped down as CEO of Forest City New York to form her own development company, L&L MAG. Around the same time, Forest City announced that it was selling nearly all of its remaining stake in Pacific Park, bringing Greenland USA’s interest in the megadevelopment up to 95 percent.

Forest City’s portfolio includes properties like the New York Times headquarters. The company is concentrated in urban markets including Boston, San Francisco and Dallas. Brookfield has expertise in repositioning office buildings, as it did in Manhattan West as well as its plan at 666 Fifth Avenue. [WSJ] — Meenal Vamburkar


Related Articles

arrow_forward_ios
A photo illustration of Related Companies' Jeff Blau (Getty)
Related proposes 1,500-room resort in Hudson Yards casino bid
Related proposes 1,500-room resort in Hudson Yards casino bid
Jared Kushner and 666 Fifth Avenue (Getty, David Shankbone, CC BY 2.5 - via Wikimedia Commons)
Congress probes Jared Kushner’s dealings amid 666 Fifth Avenue sale
Congress probes Jared Kushner’s dealings amid 666 Fifth Avenue sale
Council member Pierina Ana Sanchez and RSA’s Joseph Strasburg (Getty; Twitter)
Citing Bronx fire, Council pushes building violation crackdown
Citing Bronx fire, Council pushes building violation crackdown
SB Development’s Joseph Stern and Northwind’s Ran Eliasaf with rendering of Nova (LinkedIn, NOVA)
SB Development, Hazelton Capital score $62M loan for LIC condo tower
SB Development, Hazelton Capital score $62M loan for LIC condo tower
Illustration of Mayor Eric Adams (Getty; Illustration by Kevin Rebong for The Real Deal)
Oh, rats! Eric Adams contests summons for infestation
Oh, rats! Eric Adams contests summons for infestation
Brookfield's Bruce Flatt with 1100 Newark Turnpike (Loopnet, Brookfield)
Brookfield buys CSX industrial site in Northern New Jersey for $67M
Brookfield buys CSX industrial site in Northern New Jersey for $67M
198 Scholes Street, 65 Kent Avenue, 506 DeKalb Avenue and 11 Gunther Place (Illustration by the Real Deal with Getty, Google Maps)
Avi Philipson deal to acquire All Year portfolio is back on
Avi Philipson deal to acquire All Year portfolio is back on
From left: McSam Hotel Group's Sam Chang and SL Green's Marc Holliday with 711 Seventh Avenue  (Getty, Google Mpas, SL Green)
Times Square hotel developer sues neighbors over delayed demolition
Times Square hotel developer sues neighbors over delayed demolition
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...