Reckson Rejects Icahn's Solo Buyout Bid

Real estate investment trust Reckson declined a takeover proposal from Carl Icahn's American Real Estate Partners LP -- the company's independent directors indicated that Icahn's offer "did not meet the standard" outlined in Reckson's merger agreement with SL Green and the bid "raised significant financial and legal issues." Harry Macklowe and Mack-Cali backed out of a proposed partnership with Icahn, prompting him to go solo on his proposed buyout of Reckson at $49 a share with $1 billion in cash and $3.3 billion American Real Estate preferred stock. This offer is an attempt to compete with S.L Green's proposal, which is currently valued at $45.60 a share. A vote on the merger with S.L Green is expected to take place on December 6.
• Sources: Marketwatch, Reuters, Wall Street Journal, TheStreet.com, Reckson SEC Filings
• Related commentary: Reckson Realty: The Real Story, Reckson Drama Grows: Icahn Loses Partners Macklowe, Mack-Cali, Icahn, Macklowe Already Hold 8% Of Takeover Target Reckson
• Potentially impacted stocks and ETFs: Reckson Associates Realty Corp. (RA), SL Green Realty Corp. (SLG), American Real Estate Partners L.P. (ACP), Mack -Cali (CLI)

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