Bill Ackman’s Pershing Square, the largest shareholder of General Growth Properties Inc (NYSE:GGP) has just filed a 13D with the Securities and Exchange Commission (SEC), requesting that the company put itself up for sale.  Ackman writes several pages explaining his background helping the company re-organize out of bankruptcy. Ackman’s best investment so far has been his purchase of General Growth Properties, which he bought at approximately $0.37, which Ackman notes is a 77x return on the investment. Shares of the company are currently trading at $19.10, up 3.3% for the day.

Bill Ackman

Ackman notes  that he owns 72,233,712 common shares of General Growth Properties Inc (NYSE:GGP), in addition to long-term warrants on 18,224,213 shares, and cash-settled swaps on 7,569,272 million shares, which  gives Pershing Square Capital a 10.2% stake in General Growth Properties Inc (NYSE:GGP).

Ackman notes during the bankruptcy, Simon Property Group, Inc (NYSE:SPG) (“SPG” or “Simon”) made numerous efforts to acquire General Growth Properties Inc (NYSE:GGP) at prices which would not have delivered fair value to GGP shareholders. In order to defend the company from the risk of it being unfairly expropriated from shareholders, furthermore he states that “As of the close of the stock on the day prior to the meeting, GGP was trading at $12.70 per share, and Simon was trading at $115.23. The Simon Transaction would have valued GGP at $21 per share, a 65% percent premium to the previous day’s close, and would have offered GGP shareholders the opportunity to receive highly liquid Simon stock consideration that could be sold at any time, or, in the alternative, cash for up to 20% of GGP shareholders.”

Ackman then states that using Simon Property Group, Inc (NYSE:SPG)’s ratio, General Growth Properties Inc (NYSE:GGP) shares should be trading at a 51% premium and the dividend could be hiked by 68%, plus the company would have less leverage.

He wants to prevent Brookfield Asset Management Inc. (NYSE:BAM) (TSE:BAM) from taking control of General Growth Properties Inc (NYSE:GGP) without an appropriate premium. Ackman states that he is not accusing Brookfield Asset Management Inc. (NYSE:BAM) (TSE:BAM) of anything but wants to level the playing field, and get a fair deal for shareholders of General Growth Properties Inc (NYSE:GGP).