Business News
Mack-Cali Pulls Out of Reckson Takeover Group
TSC Staff
12/02/06 - 08:56 PM EST
Mack-Cali's (CLI Quote) partnership with investor Carl Icahn and real estate developer Harry Macklowe has proved short-lived.
Less than a week after joining the two men in their attempt to take over Reckson Associates (RA Quote), Mack-Cali is pulling out of the group.
Reckson disclosed the development Saturday evening in a press release. It also said Mack-Cali had informed it that it will not invest $400 million in the Icahn-Macklowe partnership, which is called Rome Acquisition.
Reckson also said it has yet to receive information from Rome regarding the partnership's debt financing arrangements and also hasnt received a firm proposal from Rome.
In the press release, Reckson continued to recommend its pending acquisition by SL Green (SLG Quote), which this summer made a cash-and-stock offer recently valued at $45.89 a share. Last month, Icahn and Macklowe offered $49 a share for Reckson and appeared to have the upper hand after SL Green said Thursday that it wouldn't raise its bid for Reckson to match their offer.
Reckson owns a portfolio of desirable office properties in New York City and nearby suburbs.
Reckson shares finished Friday down 29 cents at $48.09. Mack-Cali stock ended the session up 14 cents at $54.78.