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Former Forest City Realty Trust CEO Urges Shareholders To Vote Against Brookfield Buy


Albert Ratner, co-chairman emeritus and former Chief Executive Officer of Forest City Realty Trust Inc. recently issued an open letter to Forest City shareholders publicly announcing, for the first time, his intention to vote all of the Forest City shares he controls against the company’s pending acquisition by Brookfield Property Partners. He also urged fellow shareholders to vote to reject the transaction at the special meeting of Forest City stockholders scheduled for November 15, 2018.

His letter cites five key considerations related to the pending transaction that he believes every Forest City shareholder should consider carefully in voting their shares:

1. It is the wrong price
2. It is the wrong timing
3. It resulted from a flawed process
4. Forest City has a high quality/low debt structure
5. There are the superior value opportunities available to Forest City shareholders if they reject the transaction

Ratner stated, “Forest City shareholders have only one question to decide: is it better to accept an effective $24.99 per share price from Brookfield now, or maintain the ability to receive an estimated $46.03 per share (minus potential transaction costs) on an undiscounted basis – which is 84% more than the $24.99 effective price — over the coming roughly 26 months?”

In his letter, he also applauded the five members of Forest City’s board who voted against the transaction and who “clearly spoke against the deal, despite being in the minority.”

The REIT Wire will continue to monitor the outcome of this potential buy in the coming months.