Friday, May 29, 2009

Ackman Bullish on GGP Stock

Bill Ackman, whose hedge fund Pershing Square Capital Management is the largest individual shareholder of General Growth Properties, believes the company “will emerge from bankruptcy reorganization in a strong enough position to benefit investors daring enough to buy its shares.” 

According to this story by Thomas M. Anderson in, Ackman told investors at a conference in New York that GGP “sought bankruptcy protection because it couldn't refinance its mortgages during the financial crisis, not because its business is unsound.” 

“Ackman thinks the stock is worth $10 a share in a bankruptcy-court decision that does not involve liquidating the company -- his most pessimistic scenario -- and as much as $30 if court rulings favor General Growth.