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SL Green Doubts Credibility of Icahn/Macklowe Bid

NEW YORK CITY-After weeks of debate over the proposed merger's value, the new bid offers more money per share; but SL Green believes the offer was made in haste.

By Katie Hinderer | Updated on November 16, 2006

NEW YORK CITY-With news of a second offer to purchase Reckson Associates Realty Corp., SL Green Realty Corp. remains confident that its bid is the best option. On Nov. 16, developer Carl Icahn and Macklowe Properties submitted a bid to acquire Reckson for more money per share than SL Green offered back in August.

Icahn/Macklowe’s bid, said to be worth $4.6 billion, offers $49 in cash per share. The new bidder has asked for 10 days to complete its due diligence on the transaction. Late in the afternoon yesterday, SL Green issued a statement calling into question the new bid.

The company said, “While the company has been advised of another offer, we have doubts that it is a credible bid. The proposal is from a group that has not had access to any non-public information and has conditioned its offer on due diligence. Having gone through a thorough due diligence process ourselves, we know there are substantial incremental transaction costs that they have likely not considered. Furthermore, the offer does not show that the bidders have the committed and unconditional financing for a transaction valued in excess of $6.5 billion.”

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