GGP to exit bankruptcy?

General Growth receives term sheet from Brookfield Asset Management

By Wall Street Media on MSN Money Feb 24, 2010 5:24PM

Written by Douglas Estadt


Todd Sullivan from http://ValuePlays.net  shares big news on his long stock-pick GGWPQ. Brookfield Asset Management trumps last week's offer from Simon Properties and have issued a term sheet to GGP. Under these terms:

 

  • company will split into 2; 1 with high quality assets, initially priced at $10/share, the other with riskier assets at $5/share

  • Brookfield will backstop the smaller of the 2 co.'s to guarantee that initial value for current shareholders

  • existing shareholders will receive share for share of new entity; they'll participate in the upside of the existing GGP shares

 

In addition, when they come out of chapter 11, GGP will be the 2nd - 3rd largest REIT by market cap. To learn more about Todd's thesis and GGP, view the video below.


To have some of your risk capital autotraded for you on Covestor Investment Management, see my model here.

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