General Growth Properties

Bill Ackman, Carl Icahn Give Up

Not on hating each other, of course, or on making money. But in the wake of Uncle Carl’s victorious waving of the white flag in his phony proxy war with Apple, r.e.: stock buybacks, his nemesis, after a bit of soul-searching, is calling it a day on his time at the mall. Unlike his last retail capitulation– ixnay on the jc enney-pay– Ackman’s investors are up to the tune of better than a billion dollars. Read more »

It’s August, things are slow, and I have a suspicion that Carl Icahn let his lawyers go on vacation and is just writing his two-sentence letters to CVR Energy himself. Bill Ackman, not so much:

To the Board of Directors of General Growth Properties:

… [eight pages] …

I look forward to speaking further with the Board about the above.

He even cc’s a lawyer.*

The saga here is long and winding; the letter actually explains it well or you could read this Reuters article but in sort-of brief:

  • Pershing Square is the second-largest shareholder of GGP, with 7.7% of the company, or 10.2% on Ackman’s somewhat aggressive accounting**
  • The largest holder is Brookfield Asset Management, with 38.2% plus warrants for 4% more.
  • Pershing and Brookfield got their shares mostly in the process of helping GGP out of bankruptcy, which it was in due to some unpleasantness over some loans, but it’s doing great now thanks for asking.
  • But keep in mind: Read more »

We brought you Bill Ackman’s first presentation on the ratings agencies earlier this week. Now here’s the second part of the presentation on General Growth Properties.

GGP Part Two [PDF]