General Growth Properties Inc. has sweetened the terms of its “poison pill” for existing shareholders in a bid to prevent a lowball offer for the troubled shopping mall owner.
The Chicago-based real estate investment trust on Thursday said it has extended for two years, until Nov. 18, 2010, its shareholder rights’ plan, a device to make hostile takeovers more expensive by increasing the amount of outstanding stock. General Growth’s plan would be triggered if a hostile bidder acquires 15% of the company. In effect, shareholders have the right to buy common stock from the company at half the market value. General Growth reduced the price of each right by 29%, to $105, which would give shareholders common stock worth $210.
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