General Growth Properties Inc (NYSE:GGP) said on Tuesday it planned to remain independent and rejected a call by investor Bill Ackman to put itself up for sale.
“The board has unanimously determined that the best value for all shareholders will be achieved by GGP continuing to execute on its well-conceived business plan,” Sandeep Mathrani, General Growth’s chief executive officer, said in a letter to Ackman, founder of Pershing Square Capital Management LP.
The letter was filed yesterday with the U.S. Securities and Exchange Commission.
Pershing Square is the second biggest shareholder in the U.S. shopping mall owner. On Aug 23, it urged the landlord to form a committee to consider selling off the company. At that time Ackman had said that Simon Property Group was interested in buying it. He advised that General Growth should start negotiations with Simon.
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General Growth fell 3.6 percent to $19.86 at 10 a.m. New York time. The shares had gained 11 percent from Aug. 22 through yesterday.
“We agree with the position unanimously taken by GGP’s board to have GGP continue to execute on its business plan,” General Growth Chairman J. Bruce Flatt said yesterday in a letter to General Growth’s board and shareholders.
“GGP is currently performing extremely well and we believe GGP is positioned for superior growth over the next five years versus any comparable retail mall investment.”
Simon had discussed paying 0.1765 of a Simon share for each General Growth share, according to Ackman. That would value General Growth at $27.57 a share, based on Simon’s closing price yesterday.