Reckson delays shareholder meeting
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- November
- 27
Reckson Associates Realty Corp. announced that it is postponing a stockholders meeting to consider the $3.8 billion sale of the real estate company to SL Green Realty Corp. as it awaits a competing $4.26 billion offer backed by billionaire investor Carl C. Icahn.
Reckson, the largest office landlord in Westchester County, said that the new date for the shareholders meeting is Dec. 6. The meeting had been scheduled for Tuesday after it was postponed from last week.
Reckson added that it had received a letter from the investor partnership associated with Icahn and Harry Macklowe confirming a proposal for $49 per share in cash for all of Reckson outstanding shares. That compares to an offer of $43.31 a share in cash and stock from SL Green. Reckson added that Icahn and Macklowe expect to submit a formal proposal and details of commitments from lenders by Dec. 4.
“This amount of equity, when combined with the debt financing expected to be provided by our lenders, would satisfy all of the funding needed to close our proposed transaction,� Icahn and Macklowe said in a letter to Reckson filed with the the Securities and Exchange Commission.
At stake is the future ownership of Reckson, a real-estate investment trust that has stakes in more than 100 office and industrial buildings and 20 million square feet of space concentrated in New York City and the suburbs. Green’s offer, originally announced in August, called for Green to sell Reckson assets it didn’t want, including the Platinum Mile of prime office space in Westchester County, to a group of top Reckson managers who would depart the company. Those managers were led by Scott Rechler, Reckson chairman and chief executive officer.
Dissident shareholders have charged that the SL Green deal undervalued the Westchester assets. Icahn and Macklowe called their group’s bid “financially superior� in a letter filed with the SEC.
Reckson said that its board, by a vote of its independent directors, has reaffirmed a recommendation of Reckson’s pending merger with SL Green.
This entry was posted
on Monday, November 27th, 2006 at 5:27 pm by Jay Loomis.
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