The board of General Growth Properties Inc. on Monday rejected activist investor Bill Ackman’s call for the company to consider selling itself, saying its shareholders would be best served by the company sticking to its current business plan.
“After reviewing your letters and giving the matters you raised serious consideration, the board has unanimously determined that the best value for all shareholders will be achieved by GGP continuing to execute on its well-conceived business plan,” the board said in a letter to Ackman contained in a filing with the U.S. Securities and Exchange Commission.
After the filing, General Growth shares fell 4 percent to $19.78 in after-hours trading, down from their Monday close of $20.60.
Ackman, who runs the $10 billion hedge fund Pershing Square Capital Management and has a 10.5 percent stake in GeneralGrowth, urged the mall operator’s independent directors to form a special committee to consider a sale. He was not immediately available for comment.