Forest City Realty restarts deal talks with Brookfield: Reuters

U.S.-based Forest City Realty Trust Inc has restarted talks with Brookfield Asset Management for a takeover by the Canadian firm, Bloomberg reported on Monday, citing people familiar with the matter.

The potential price under discussion is close to the range of US$25.00 to US$25.50 per share, the report said.

The Cleveland-based real estate investment trust’s shares rose as much as 13.23 percent to US$22.68 in afternoon trading, their biggest intraday percentage gain in more than six years.

The company said in March it would not sell itself, following a strategic review, but agreed with three activist investors to have nine directors resign and largely be replaced by independent nominees.

In the review, which began in September, Forest City reached out to more than 50 potential acquirers and entered into exclusive talks with a large financial institution, but the talks broke down over price and closing conditions.

Forest City Realty mainly focuses on office and apartment buildings in urban markets such as New York and San Francisco, as well as mixed-use urban developments.

The company declined to comment, while Brookfield did not respond to an e-mail requesting comment.

(Reporting by Ankit Ajmera in Bengaluru)