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4/30/08
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With recent efforts to locate a potential buyer for Maguire Properties having come to a halt a few weeks ago without any likely contenders, company CEO Rob Maguire is now making a strong play to buy the company himself. The company has announced that Maguire has made an offer to purchase 75% of the publicly traded office property firm at a price of $21 per share. The stock opened Monday morning at around $17.50 per share but dropped to around $16.50 per share by mid-day.
Wells Fargo Center, Los Angeles |
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Maguire’s offer consists of approximately $18.18 per share special cash distribution by the Company, along with a cash tender offer of by Mr. Maguire of $2.82 per share. The proposed arrangement would require approval of holders of two-thirds of the company’s outstanding stock and would allow the shareholders to retain a “stub interest” in the company.
Rumors of a potential sale have swirled around Maguire for some time, as many have felt that the firm is undervalued and some effort was needed to boost its stock price. Last December, after considerable prodding, the company created a committee to look for a buyer, but no real solution came of it. This is providing the opportunity for Maguire, who had expressed an interest in acquiring the company in the past, to gain firmer control of the company.
As of the moment, the company has indicated that they view this offer as an expression of interest, with many questions and contingencies still needing to be answered before a final offer can be presented to the shareholders.
Maguire maintains an almost legendary status as far as office development in LA is concerned. He, with then partner Jim Thomas, developed many of the largest, tallest and most prized skyscrapers in downtown Los Angeles in the 80s and early 90s, such as Wells Fargo Center, the Gas Company Tower and Library Tower, the tallest building west of the Mississippi.
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