NEW YORK CITY-A state Appeals Court has ruled against a group of shareholders who filed suit claiming last October's public offering by Malkin Holdings of its Empire State Building and 18 other properties.
The State Appellate Court ruled that the offering was legal and is another setback for the shareholders who failed to block the public offering that culminated in Empire State Realty Trust Inc. selling 71.5 million shares for $13 each last October.
Prior to the offering, Malkin Holdings stated could buy out dissenting voters for $100 a share, a fraction of the $300,000-plus the company had estimated the shares were worth, according to Crain's New York Business. The shareholders claimed in their legal action that Malkin Holdings used the buyout provision to pressure opponents to cooperate with the plan in violation of laws governing limited liability companies.
The appellate court ruled that the Empire State Building shareholders were not part of a limited liability company and therefore were not unfairly pressured. See story in Crain's New York Business.
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