Maguire Properties rejects founder’s bid for control

Downtown Los Angeles office baron Robert Maguire, in a fight to keep control of the real estate trust he founded, today made a complicated offer to buy it and sell off many of its signature holdings, perhaps including the tallest building in the West.

But his offer to buy back Maguire Properties Inc. was quickly rebuffed by key members of the board of directors, who said the proposal had way too many ifs.

Share prices fell as much as 4% on the news that Chairman Robert Maguire’s offer of about $745 million would not be considered by the special committee of independent directors formed in December to consider a possible sale of the troubled company.

In a statement released this morning, the company said the committee found Maguire’s offer “not currently actionable” because his proposal “is subject to numerous, substantial contingencies and questions.”

Indeed, Maguire’s play to take over the company called for a lot of leverage. He wants to sell most of its buildings outside of Orange County to help pay for the acquisition. Some of the nation’s largest real estate investors have already expressed interest in buying trophy buildings Robert Maguire helped develop in downtown Los Angeles, including the 72-story US Bank Tower, the peak of the downtown Los Angeles skyline.

Selling properties in Los Angeles and San Diego counties would leave Maguire with substantial holdings in Orange County, where he made a big investment in 2007 as part of a $3-billion acquisition of office buildings from the New York investment firm Blackstone Group.

The blockbuster deal saddled Maguire Properties with substantial debt and helped put pressure on Robert Maguire to relinquish control of the company. But he remains chief executive and chairman.

Maguire Properties representatives declined to comment further on today’s announcement.

roger.vincent@latimes.com