Brookfield has indicated that it will tender for the preferred at $25 without interest, which would be another $9.05 by 7/31/13.
Currently, the preferred is trading at around $27, more than the $25 that will be offered in the tender, but less than the $34.05 if the preferred was redeemed and the cumulative interest paid.
If 2/3 of the preferred tender, than Brookfield can force the remaining preferred to accept the $25. Also, a vote would normally be scheduled around now for directors; since the preferred is behind more than 6 quarters, the preferred
has the right to vote for 2 directors. The only major holder of the preferred is Caspian Capital LP with 9.23% of the shares.
Those are what I consider the most important items. The preferred tender is sleazy, and a way to screw preferred holders. Since the preferred is selling above the tender offer, others have similar feelings. It would be nice if activists would be involved. I think there is money for them to earn.
MPG is cheating the preferred stockholders to the benefit of the common. Once the transaction is approved by the common stockholders, law suits will be filed, and the transaction will be stopped by the court.
It's not MPG that's doing it, it's Brookfield. MPG probably took the best offer they could. Brookfield is just trying to get the best offer they can. The problem is who is really looking after the books of these individual properties after the fact when they're combined since the arrears will only be based on those properties if there is ever a payout. It would be very easy for BPO (yes i know technically it's not the parent company but lets be realistic) to ensure that the payment is never resumed even when it's 100% occupied.