Another bid for Maguire reported
Shares of Maguire Properties Inc., the biggest office landlord in downtown Los Angeles, rose 8.6% on Friday amid speculation that bidders vying to buy the company would raise its value.
Since late last year the real estate investment trust based in Santa Monica has been under attack from investors who want Robert Maguire, the 72-year-old chairman and chief executive, to step down or sell the debt-laden company.
The company announced in December that a special committee of independent directors would entertain bids. Maguire himself soon said that he would be among the bidders. He said his financial backers included Century City-based real estate investment giant Colony Capital and the Qatar Investment Authority, which invests internationally on behalf of the Persian Gulf state.
New York-based Brookfield Properties Corp., which already owns three top-quality office buildings in downtown Los Angeles, is also one of the bidders, analysts say. On Friday, though, industry newsletter the REIT Newshound reported that Chicago investor Walton Street Capital also wanted to buy the company.
“What appears to be a third bidder makes this much more of a competitive situation,” said analyst Craig Silvers, president of Bricks & Mortar Capital. “It makes it harder for Maguire to get the company at a competitive price.”
Spokeswomen for Maguire and Brookfield declined to comment Friday, and a representative of Walton Street Capital could not be reached.
Maguire Properties also announced Friday that it was canceling its presentation at a get-together next month in Florida for analysts and chief executives of real estate firms. It cited the company’s “ongoing strategic alternative review process” as the reason for bailing out.
“That confirms the bidding process is still alive,” Silvers said. Bids reportedly are due Monday.
Company shares climbed $1.81 to $22.80 on Friday. Share value has fallen 43% in the last year, underperforming the industry as a whole. A barometer calculated by Bloomberg showed an industry average drop of 32%.
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