CANADIAN HOSPITALITY. Brookfield Asset Management is engaging in some self-serving generosity. On Thursday the Canadian property giant raised its bid to take private its listed commercial real estate arm Brookfield Property Partners offering minority shareholders $6.5...
NEW YORK (Reuters Breakingviews) - CANADIAN HOSPITALITY. Brookfield Asset Management is engaging in some self-serving generosity. On Thursday the Canadian property giant raised its bid to take private its listed commercial real estate arm Brookfield Property Partners offering minority shareholders $6.5 billion or 10% more than January&rsquos opening gambit.
Digging deeper is a Brookfield speciality. It similarly raised bids for GGP Rouse Properties Brookfield Office Properties and Canada Office Properties. This bump is bigger than usual partly because Brookfield&rsquos own shares have risen in the meantime. That&rsquos despite the fact the group holds around 60% of BPP already. At Rouse and GGP it didn&rsquot even have a majority stake.
BPP&rsquos eight independent directors no doubt helped keep Brookfield boss Bruce Flatt honest. They had assistance from Lazard which opined that their company was worth up to 12% more than Brookfield&rsquos first offer. More importantly Brookfield&rsquos sprawling business model which runs from shopping malls to railways hinges on bringing in outside investors to share risk. A reputation for sharp treatment would not be an asset. (By John Foley)
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