"Lasting a month, Rouse’s rights offering never reached the $15 level but instead of the embarrassment of a failed deal—less than 15 percent of Rouse’s non-Brookfield shareholders participated in the offering—Rouse got its money. That’s because Brookfield “backstopped” (or guaranteed) the completion of the deal—for a $6 million fee. After the deal was done in March 2012, Brookfield owned an additional 11.35 million shares, taking its stake in Rouse from 37 percent to 54 percent, giving it effective control over the company. Of note, Brookfield was able to do this without paying a control premium to Rouse’s investors.
Shortly after the rights offering was closed, Brookfield and Rouse engaged in a series of transactions that seem to show how Brookfield obtained a large block of Rouse shares by spending only $13.7 million."
See also: http://sirf-online.org/
(No comment on the actions of Rouse.)
Well, where have we experienced this before?
Stelco, Ainsworth Lumber, The Atlantis Resort, Fraser Paper . . .
Vampire Squid Species?
Read Matt Tiabbi's Rolling Stone article in which he describes Goldman Sach's as “great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.”
What do you think? Is Brookfield the Canadian vampire squid cousin of Goldman Sach's?