NEW YORK CITY-A New York State Supreme Court justice has dismissed a dissident shareholder lawsuit against the planned restructuring of the ownership of the Empire State Building by the Malkin family.
New York State Supreme Court Justice O. Peter Sherwood's ruling clears the way for the owner—the Malkin family—to raise $1 billion for Empire State Realty Trust, a REIT comprised of the Empire State Building and 20 other properties.
The dissident shareholders had argued against the Malkin plan to buy out them for $100 a share, according to Bloomberg News. Stephen Meister, an attorney for the opponents, tells GlobeSt.com that the decision is "wrong" and that he plans to appeal.
A spokesman for Malkin Holdings tells GlobeSt.com that the ESB's ownership is "pleased by the court's ruling and are proceeding with our solicitation with the intention of closing as soon as we reach the approval threshold. The fact is that far more investors support this transaction than oppose it. We are focused on delivering the majority what they want as quickly as possible.”
If the IPO goes through, it would be the second largest staged by a US REIT, second only to the $1.6-billion debut of Douglas Emmett Inc. in 2006, accoridng to Bloomberg. See story at Bloomberg News.
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