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 rendering of 85 Jay Street and RXR Realty CEO Scott Rechler (Winick, Getty)
RXR makes $220M apartment bet in Brooklyn
RXR makes $220M apartment bet in Brooklyn
Thor Equities Group Chairman Joseph J. Sitt. (Thor)
Thor facing foreclosure on Harlem rental building
Thor facing foreclosure on Harlem rental building
Photo illustration of Vornado CEO Steven Roth and Hotel Pennsylvania at 401 Seventh Avenue (Getty, iStock, Vornado)
“Inevitable”: Vornado will demolish Hotel Pennsylvania
“Inevitable”: Vornado will demolish Hotel Pennsylvania
The rate of loans sent to special servicers continued to fall in March. (Unsplash)
CMBS special servicing rate declines in March
CMBS special servicing rate declines in March
JLL CEO Christian Ulbrich. (Getty)
JLL explores sale of China property management wing
JLL explores sale of China property management wing
Dollar General CEO Todd Vasos (Retail Industry Leaders Association, iStock)
Dollar General thrives amid retail apocalypse
Dollar General thrives amid retail apocalypse
Bill Lee (Lee & Associates/YouTube)
Lee & Associates founder Bill Lee dies
Lee & Associates founder Bill Lee dies
The vacancy rate for regional and superregional malls is at an all-time high.  (Getty)
Mall vacancy rate hits all-time high
Mall vacancy rate hits all-time high
arrow_forward_ios

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

Loading...