Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
🚨 Don’t miss your updated list of AI-picked stocks for this month
Pick Stocks with AI
GGP Refuses Brookfield's Buyout Offer, Negotiations Continue
By Zacks Investment ResearchStock MarketsDec 10, 2017 08:43PM ET
www.investing.com/analysis/ggp-refuses-brookfields-buyout-offer-negotiations-continue-200272166
GGP Refuses Brookfield's Buyout Offer, Negotiations Continue
By Zacks Investment Research | Dec 10, 2017 08:43PM ET GGP Inc. (NYSE:GGP) has rejected a $14.8 million takeover bid by its biggest shareholder, Brookfield Property Partners LP, according to a Bloomberg report.
Amid heightening rumors, on Nov 11, GGP confirmed receiving a $23 per share cash and stock offer from Brookfield to acquire the remaining stake in the retail real estate investment trust (REIT) that it does not already own. GGP also announced the formation of a special committee to examine the proposal.
Shares of GGP rallied more than 16% to $22.10 on Nov 7 when details of the offer were revealed. (Read more: GGP Investors Rejoice as Buyout Speculations Hit Headlines)
Per the recent report, although the committee has declined the “inadequate” deal, both parties continue to negotiate in order to reach an agreement. In fact, Brookfield is considering a new proposal for the deal.
The report also mentioned that neither companies intend to make any further announcements in the matter until a definitive deal is agreed upon.
The alliance would result in one of the largest publicly-traded real estate companies of the world. In fact, according to a Reuters article, which cited Brookfield, this buyout will create a conglomerate with ownership interest in global real estate assets worth around $100 billion and an annual net operating income (“NOI”) of around $5 billion.
Per Brookfield, the above-mentioned acquisition will offer growth opportunities to GGP by transforming and repurposing its retail assets.
Of late, mall traffic has been adversely affected and retail landlords, including Regency Centers Corporation (NYSE:REG) , Taubman Centers (NYSE:TCO) and Kimco Realty Corporation (NYSE:KIM) , have felt the heat due to consumers’ preferences increasingly shifting toward online retail. This has resulted in widespread store closures and bankruptcy filing by the owners.
These challenges in the retail real estate markets have encouraged shareholders with majority interest in the troubled retail REITs to take the companies private at favorable terms or compel to make changes.
In fact, Taubman Centers is facing activist pressure from Paul Singer’s Elliott Management, which after amassing considerable stake in the company, is advocating strategy changes in the shopping mall giant that includes disposing the company. (Read more: Stakeholder at Taubman Centers Roots for Disposal)
Shares of GGP have underperformed the industry it belongs to, year to date. The company’s shares have lost 6.2% as against the industry’s growth of 10.3% during the period.
Further, GGP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
Kimco Realty Corporation (KIM): Free Stock Analysis Report
Taubman Centers, Inc. (TCO): Free Stock Analysis Report
Regency Centers Corporation (REG): Free Stock Analysis Report
General Growth Properties, Inc. (GGP): Free Stock Analysis Report
Original post
Zacks Investment Research
Related Articles
3 Low-Volatility Stocks to Hedge Against S&P 500 Swings
By Gabriel Osorio-Mazzilli - Feb 28, 2025
Regimes are changing in the market, and this could mean a few things, but today, it means that volatility is back. Whenever these shifts come, specifically to the S&P 500...
2 Key Catalysts Needed to Push Nvidia Stock Up 30% This Year
By Thomas Hughes - Feb 28, 2025
There are more than two reasons why NVIDIA’s (NASDAQ:NVDA) stock price can rally another 30% or more in 2025, but the two that underpin the others are data center and automotive...
S&P 500 Slips Below 5,900 - Put Wall Shift Signals More Downside Risk
By Michael Kramer - Feb 27, 2025
1
Stocks fell sharply, with the S&P 500 leading the decline, finishing the day down almost 1.6% at 5,860. Meanwhile, the Nasdaq 100 dropped nearly 2.75%, closing at 20,550. This...
GGP Refuses Brookfield's Buyout Offer, Negotiations Continue
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.