This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Gotham Liquidates Big Stock Holding

Gotham Partners is moving to liquidate one of its big stock holdings, as securities regulators step up an inquiry into the hedge fund's business practices.

The hedge fund, which is in the process of shutting down its major investment funds, filed a notice Wednesday that it intends to sell its 31% stake in Imperial Parking (IPK), a Canadian-based operator of parking lots in Canada and the U.S.

Gotham effectively controls Imperial, a company with more than $120 million in annual revenue and about $2 million in net income. William Ackman, one of the hedge fund's co-founders, has been chairman of Imperial for the past two years.

Gotham, which has an agreement with Imperial not to sell its shares until May 23, disclosed its intention in a filing Wednesday with the Securities and Exchange Commission. The delay is intended to give Imperial a chance to explore "strategic alternatives."

Imperial, a thinly traded stock with a market capitalization of $41 million, rose a nickel on Wednesday to close at $22.70.

The Gotham stock liquidation comes at a time that New York Attorney General Eliot Spitzer is looking into the hedge fund's research and trading practices. The planned stock sale also reveals another layer in what is emerging as a tangled web of intersecting business deals involving Gotham, Ackman and several independent real-estate companies.

In particular, Spitzer is investigating allegations that Gotham and other hedge funds conspired to drive down the price of some stocks by issuing negative research reports on those companies. Spitzer launched the informal investigation after officials with bond insurer MBIA (MBI - Get Report) complained last week about a highly critical research report Gotham issued about the company in early December.

At the time Gotham published the report on MBIA, the hedge fund had taken a short position in MBIA shares -- a market bet that a company's stock will in fall.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FUR $12.72 0.00%
IPK $30.99 0.00%
MBI $7.80 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs