Rizk Ventures LLC will no longer pursue a deal for Jersey City-based real estate investment trust Mack-Cali Corp., according to a Bloomberg News report.
The news service quoted a Feb. 23 letter to the target from Rizk Ventures Chief Executive Officer Thomas Rizk saying that the suitor had been “left with the clear impression that the board has no genuine intention to even explore a sale of the company, and therefore crafted responses to create an appearance of attempting to engage with us while erecting arbitrary and non-commercial obstacles in an effort to justify its often expressed refusal to engage.” Therefore, the firm would drop its efforts.
“We do so reluctantly, but we have no choice as it has become abundantly clear that the company is refusing to engage with us in any substantive way,” Rizk wrote.
In response, the Mack-Cali board on Feb. 28 released the text of a letter from the REIT to Rizk suggesting that Rizk had not provided enough information about its offer. “Among other things, you did not specify a price or form of consideration, the amount of equity proposed to be funded by Rizk Ventures, and your equity financing sources,” the board wrote.
Last year, Mack-Cali faced a proxy contest from Bow Street LLC and said it would form a special committee to explore a possible sale. In June, Bow Street said its director candidates had been elected to the REIT’s board.
In December, Mack-Cali said it would sell its entire suburban office portfolio, beginning with properties in Parippany and Madison.