SL Green Won't Match Icahn Bid

SL Green(SLG Quote) said it has no intention of raising its bid for Reckson Associates(RA Quote) to match a competing offer, giving Carl Icahn and Macklowe Properties the upper hand in the pursuit to take over the company.

SL Green agreed to purchase Reckson this summer with a cash and stock offer currently valued at $45.89 a share, according to a calculation based off Wednesday's closing price by Bank of America analyst Ross Nussbaum. Earlier this month, Icahn and his partner swooped in with a $49-a-share proposal.

This week, Mack-Cali(CLI Quote) decided to partner with Icahn and Macklowe. The company will contribute at least $300 million to the deal, according an SL Green Securities and Exchange Commission filing late Wednesday.

Reckson owns a portfolio of desirable office properties in New York City and nearby suburbs. The Icahn/Macklowe partnership is expected to have delivered to Reckson's board a fully-funded offer by Thursday, according to Nussbaum. If the SL Green agreement is terminated, then SL Green will receive a breakup fee of $90 million fee. ...