General Growth jumps after hedge fund investment
Baltimore Business Journal - by Jeff Clabaugh Contributor
Struggling General Growth Properties Inc., Baltimore's biggest mall owner, rallied Tuesday after disclosing an investment from hedge fund manager Pershing Square Capital Management LP.
General Growth stock nearly doubled in morning trading.
New York-based Pershing Square Capital bought 20.1 million shares of General Growth Properties stock this month, giving it a 7.5 percent stake in the company. It also has options on an additional 33.4 million shares for a total of a nearly 20 percent stake.
Chicago-based General Growth Properties reported a $15.4 million loss for its latest quarter. It has suspended its shareholder dividend and halted plans for new development. The company, facing a looming deadline for maturing debt, has said it may seek protection from its creditors.
General Growth owns eight Baltimore area malls, including Harborplace, Towson Town Center, Mondawmin Mall, the Mall in Columbia and Owings Mills Mall.
General Growth stock (NYSE: GGP) was up 95 cents to $1.95 in afternoon trading. Its shares have lost 95 percent of their value this year.
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