The Mills Corp. was once a high flyer in the building of mega-malls around the country. But the combination of a few setbacks and turnover in the executive ranks has had the company looking to sell out. That is, until yesterday when Gazit-Globe’s Chairman Chaim Katzman expressed concern to Mill Corps. CEO Mark Ordan that a sale would be at a distressed price and not to do so.
Gazit-Globe Ltd. said in a Securities and Exchange Commission filing that it has acquired 9 percent of Mills’ shares. The firm, Israel’s largest real estate investment company, said it wants Mills’ board of directors to agree to recapitalize and not go ahead with plans to sell all or part of the company.
Following the announcement, shares of Mills rose more than 13 percent Wednesday on the New York Stock Exchange, rising $2.34 to close at $19.35. The stock has traded between $12.27 and $53.57 over the last 52 weeks via International Herald Tribune.
Keep an eye out for Mills Corp. in the short term. With the backing of Gazit Globe, they may be a position to revitalize their assets and manage themselves out of the hole they got into with their ill fated New Jersey Xanadu project.
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