More Pershing/General Growth Factual Inaccuracies

What is going on out there with folks and General Growth Properties (GGWPQ) and Pershing? Is anyone actually doing any research before they put “finger to keyboard” Hat tip to reader Mark for bringing this to my attention.

First we had the NY Times this weekend not know Pershing is required to file with the SEC disclosing its activity in General Growth.

Now we have Deal.com and this story:

General Growth Properties Inc. (NYSE: GGP) was the Titanic of the Real Estate Investment Trust ocean that Morgan Stanley (NYSE: MS), Fidelity Investments and Pershing Square Capital Management L.P thought they could save from sinking. The three put their money into the Chicago-based REIT over the recent near term when its stock continued to swan dive, which culminated in a Chapter 11 filing last week. Now, Morgan Stanley, Fidelity Investments and Pershing Square have nothing to show for their stakes in General Growth but regret.

Pershing led by Bill Ackman owned a minority stake in General Growth of 7.4%. Mutual find company Fidelity owned a 13.4% share while Morgan Stanley reportedly owned a 5.1% stake.

So, what did all three as well as many others see in General Growth, whose $27.3 billion in debt, caused its knees to buckle to fall into bankruptcy?

The three likely thought that General Growth would be able:

1- to significantly lower the REIT’s massive debt load payments because they thought refinancing was a strong possibility
2- to use bailout money to payoff its existing debt and act as collateral
3- to maintain or increase revenue from retail tenants in its 200-plus malls to sustain its debt payments.

Full post

First, Ackman’s stake is just under 25% (including swaps) as indicated in the Friday SEC filing

Second, Ackman from DAY ONE was calling for Genral Growth to file Chapter 11 and hehas done at least half a dozen interviews stating the same.

Here is some of that commentary

In other words NONE of the above proposed items on the “wish list” were ever on the minds of those at Pershing.

Is it just me? It is one things to express an opinion, but what I am seeing is just really sloppy work…

Disclosure (“none” means no position):Long GGWPQ