Why is General Growth Properties Director Selling Millions Of Shares?
As shares of General Growth Properties Inc. (NYSE:GGP) rise - driven higher by a letter the company received from Pershing Square Capital Management LP in which it urged the mall operator to sell itself - one of the company's directors is selling millions of dollars through insider trades.
According to The Wall Street Journal, Pershing asked the company to create a board committee separate from fellow major General Growth shareholder Brookfield Asset Management. Pershing Square and General Growth have a longstanding relationship, and Pershing was one of a number of hedge funds that went in on an $8.5 million investment in General Growth in 2010.
"Our goals are to ensure that a level playing field exists so that Simon, Brookfield, and potentially other parties can compete to acquire the company," the firm wrote.
Although the company's shares rose more than 10 percent on the announcement, director John Schreiber made an interesting move, selling 10 million shares valued at $18.45 each. In total, the deal gave Schreiber a total of $184.5 million.
Do you think Schreiber knows insider information about the potential sale of the company?
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