Bill Ackman’s Pershing Square Capital wants “premium” price for General Growth Properties

August 27th, 2012
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Contributed by: Hedge Fund Solutions LLC
Pershing Square Capital sent a letter to the board of General Growth Properties, Inc. (GGP) on August 23 discussing their investment in the company over the past four years and their contribution to increasing the company’s share value. Bill Ackman’s Pershing Square concluded the letter with a set of goals, which are outlined below.

Pershing Square Capital Management’s Goals

Activist Holding info
% Outstanding10.20%
Company info
Share Price19.76
Market Cap$19B
Enterprise Value$35B
Net Cash-$16B
52 wk. range10.68 - 21.12
Our goals are to ensure that a level playing field exists so that Simon, Brookfield, and potentially other parties can compete to acquire the company, and that appropriate measures are taken to prevent Brookfield from unfairly acquiring control of GGP without paying an appropriate control premium in a competitively negotiated transaction.

We are highly confident that a transaction can be negotiated that provides an enormous initial premium to GGP’s current market value, which also offers investors the opportunity for continued participation in the upside of ownership of the combined enterprise with the option to exit at the time of their choosing.

We note that in the event that a suitable transaction with Simon can be negotiated that is supported by the substantial majority of shareholders other than Brookfield, but for which it is mathematically difficult to get the required majority vote given Brookfield’s ownership, the Board can take steps to enable the required shareholder vote to be consummated.

A full copy of Pershing’s August 23 letter is available by clicking “See Filing” below.

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See Filing
For Detailed Investor Profiles on these Investors, click below:
Pershing Square Capital Management
Related People: Nicholas Botta; Roy J. Katzovicz; Scott Ferguson*; William 'Bill' Ackman
Related Entities: Leucadia Corporation (NYSE: LUK); Pershing Square Capital; Pershing Square IV; Pershing Square LP
Related Article Tags: Shareholder Activists, Corporate Raiders and Proxy Battles; Hedge Fund Resources and Featured Partner News

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