Please ensure Javascript is enabled for purposes of website accessibility

Why Rouse Properties Inc. Stock Jumped Today

By Jordan Wathen - Jan 19, 2016 at 12:41PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A very hungry REIT acquirer made a bid for Rouse Properties.

What: Shares of Rouse Properties, (NYSE: RSE) are flying high on Tuesday, up nearly 31% at 1 p.m. EST, after Brookfield Asset Management (BAM -0.08%) made a bid to acquire the real estate investment trust.

So what: Rouse Properties owns 36 malls in 21 states, with roughly 25 million square feet of gross leasable area. Brookfield believes the market is undervaluing its real estate, offering $17 per share to acquire the company, a 26% premium to Friday's closing price of $13.49 per share.

Now what: A special committee is evaluating the proposed buyout. Interestingly, Rouse Properties shares traded at $17.63 at 1 p.m. EST, nearly 4% higher than the proposed transaction price. This could indicate investors' expectations of a second, higher bid by Brookfield before the transaction gets done. 

Jordan Wathen has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Brookfield Asset Management Inc. Stock Quote
Brookfield Asset Management Inc.
BAM
$50.20 (-0.08%) $0.04

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
379%
 
S&P 500 Returns
123%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/10/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.