Judge clears the way for Forest City vote on Brookfield deal

Shareholders will vote on $6.8B

New York /
Nov.November 14, 2018 04:45 PM

Albert Ratner (Credit: Global Cleveland and iStock)

An Ohio federal judge ruled that Forest City Realty Trust’s shareholder vote on Brookfield Asset Management’s acquisition of the company can go forward.

Judge Christopher Boyko on Wednesday denied Albert Ratner’s request to temporarily halt the vote on the company’s sale. Ratner, formerly CEO of Forest City, had filed a lawsuit on Monday, alleging that the Brookfield deal gave up $5.8 billion in shareholder value. He sought to delay the vote, which is scheduled for Thursday, until after Forest City issued a corrected proxy on the deal. In the lawsuit, he alleged that the company’s board had withheld important information about the real estate investment trust’s financials.

In a response filed on Wednesday, Brookfield and Forest City called Ratner’s complaint an “eleventh-hour, fire-drill litigation.” The judge found that Ratner “failed to establish irreparable harm and a strong likelihood of success on the merits.”

In July, Brookfield announced that it would buy Forest City for $6.8 billion. Forest City had rejected an early bid in March, choosing instead to reorganize the company’s board. According to Ratner’s lawsuit, Brookfield submitted a new offer for the REIT on the same day the new board was elected.


Related Articles

arrow_forward_ios
Donald Trump (Getty)
Pandemic dashed one-quarter of Trump’s NYC retail tenants
Pandemic dashed one-quarter of Trump’s NYC retail tenants
NYC hotels hoping for holiday business swell likely to be disappointed
NYC hotels hoping for holiday business swell likely to be disappointed
NYC hotels hoping for holiday business swell likely to be disappointed
Princeton proud: Eric Schmidt reportedly bidding to save club
Princeton proud: Eric Schmidt reportedly bidding to save club
Princeton proud: Eric Schmidt reportedly bidding to save club
Children’s Magical Garden at at 157 Norfolk Street (Google Maps, Facebook)
Children’s Magical Garden claps back against developer who claimed defamation
Children’s Magical Garden claps back against developer who claimed defamation
Here’s every new Amazon site in 2021
Here’s every new Amazon site in 2021
Here’s every new Amazon site in 2021
312 West 43rd Street, National Real Estate Advisors CEO Jeffrey Kanne and Taconic Partners' Paul Pariser and Charles Bendit (Google Maps, National Real Estate Advisors, Taconic Partners)
Taconic JV lands $204M loan for Hell’s Kitchen luxury rental
Taconic JV lands $204M loan for Hell’s Kitchen luxury rental
(iStock)
Proptech fundraising hits $9.5B record
Proptech fundraising hits $9.5B record
City Council advances protections for lease-breakers
City Council advances protections for lease-breakers
City Council advances protections for lease-breakers
arrow_forward_ios

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

Loading...