Star fund manager Bruce Berkowitz
gently rebuffed General Growth Properties (GGP)
CEO Adam Metz
in a letter
made public to shareholders yesterday. Berkowitz is the founder and a managing member of Miami-based Fairholme Capital Management
, manager of the Fairholme Fhund
and the Fairholme Focused Income Fund
Based in Chicago, GGP is an independent builder of shopping centers and malls throughout the country. The firm is currently independent, but received a proposal on April 14 for mall giant Simon Property Group
and Paulson & Co.
to invest in the equity of GGP. The proposal is still under consideration, according to GGP
In his letter to Metz, Berkowitz repeated that Fairholme "is not willing to invest in GGP if equity ownership is concentrated in the hands of Simon Property Group." Berkowitz said Fairholme would continue to support a "stand-alone GGP." He signed off with "kind regards" to Metz.
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