The committee turned down the bid because it contains "numerous, substantial contingencies and questions," according to Los Angeles Business. Could one of the problems for the special committee with Maguire's bid be the requirement to sell most of its assets outside of Orange County, Calif.? Possibly, this strategy would mean that Maguire would sell off its holdings in Los Angeles County, where the company on its Web site says it's the largest commercial real estate owner and developer in the downtown Los Angeles central business district with 9.1 million feet of Class A space in eight trophy quality towers.
The committee is probably cautious about going that route especially in the slowing commercial real estate market. Maguire could be selling its crown jewels for bargain basement prices. The company only has to look at real estate mogul Harry Macklowe's difficulties in selling his properties, including the GM Building in New York City. - Gerald Magpily
See Maguire Properties press releaseSee TheDeal.com: Maguire CEO proposes buyoutSee story about Macklowe from Dealscape
Maguire Properties Inc.'s special committee says it's still reviewing its strategic alternatives after rejecting a $952 million offer for 75% of the firm from its CEO, chairman and founder Robert Maguire.
