Maguire Properties (NYSE: MPG) announced that it is finalizing its review of strategic alternatives for preserving and enhancing value for stockholders. The review no longer includes an active pursuit of selling the company to an outside buyer.
Current market conditions, the current credit markets woes, and the lack of any viable acquisition proposal from third parties are all part of the reason it has ended the quest to sell itself. The Special Committee will continue to focus on non-sale options to enhance liquidity, including the company’s dividend policy. The Special Committee intends to recommend the payment of its preferred stock dividend for the first quarter of 2008.
Things haven’t gone well for the California office and real estate REIT as shares have been more than cut in half this last year. We gave this a brief review as a candidate for our Special Situation newsletter when the company announced its review, and we found a company that was likely to see losses and one that was going to be sitting on depreciating assets that were supposed to appreciate.
Shares of Maguire Properties are down another 7.7% at $15.75 in pre-market trading, and that will mark a new 52-week low.
Jon C. Ogg
March 28, 2008