Prison Realty Trust Stake of 5.75% Taken by Gotham Investors
Washington, Feb. 9 (Bloomberg) -- An investment group that often takes stakes in depressed real estate companies acquired 5.75 percent of the common shares of Prison Realty Trust Inc.
Gotham Partners LP and its affiliates began purchasing shares on Dec. 27, 1999, according to documents filed with the Securities and Exchange Commission. Prior to trading on that day, Prison Realty announced the resignation of the real estate investment trust's chief executive and the elimination of its dividend.
The investors paid $33.97 million to acquire 6.80 million shares as an investment, according to the SEC filing. That works out to an average of $4.99 a share.
Prison Realty, based in Nashville, ranks as the largest private prison owner. Its shares have fallen more than 75 percent during the past 52 weeks. The stock yesterday rose 9/16 to 4 9/16.
Gotham is a New York based investor run by William Ackman and David Berkowitz. In the mid 1990s the investment group sought to take over bankrupt Rockefeller Center in Manhattan, only to lose out to Goldman, Sachs & Co. and David Rockefeller.
only 15 million in the fundBy Craig Tolliver, CBS MarketWatch Last Update: 12:42 PM ET Feb 9, 2000 Mutual Fund Center
BOSTON (CBS.MW) -- Scudder Kemper Investments said Wednesday that it would combine 23 Scudder funds and AARP mutual funds, pending shareholder approval. Scudder said that the funds have similar investment philosophies and that the move would reduce expenses for most shareholders.
Further, Scudder said it plans to offer shareholders in the AARP Investment Program a wider range of investment choices following the consolidations, upping the number of mutual fund options from 16 to 43.
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As part of the restructuring, Scudder plans to eliminate six portfolios altogether: Scudder Real Estate Investment (SCREX), Financial Services (SCFSX), California Tax Free Money (SCAXX), New York Tax Free Money (SCYTX), International Value, and International Growth funds. See Merging funds.
appear to own approximately 30 million shares, which is approximately 27% of the total outstanding. None of these owners seems likely to vote "yes" on the Blackstone deal. (Quite the contrary, in fact.) If the deal needs 67% of the outstanding shares, and 27% are apparently lined up against it, what are the chances that management will get a favorable vote from the remaining 67/73rds of the outstanding shares (i.e., more than 90%)?
The answer is obvious: none whatsoever.
And the conclusion is obvious, too: THE BLACKSTONE DEAL IS DEAD!
Wouldn't your logic also imply that PZN will have to be managed, one way or another, on the basis of maximizing value for common shareholders. Further, if $2.00 per share FFO is a conservative target, than a price of $10 per share would be hard not to achieve.