Icahn's Partners Drop Out of Reckson Bid

Carl Icahn is going it alone in pursuing a merger bid for Reckson Associates following the withdrawal of Harry Macklowe and Mack-Cali (a New York-based office real estate investment trust) from the Rome Partnership that had been set up to pursue the merger.Reckson, a New York office REIT, reported that Mr. Icahn has submitted a bid to acquire Reckson for a total consideration of $4.3 billion through American Real Estate Partners, an entity in which he has a 90% interest. The consideration consists of $3.3 billion in AREP preferred units and $1 billion in cash. Reckson shareholders are slated to vote on the pending merger with SL Green this week, and the Reckson board is recommending that merger (for a $3.9 billion consideration to shareholders), which has a breakup penalty attached if it does not go through. AREP has also agreed in its proposal to pay the breakup fee if Reckson decides to pursue the AREP offer. Reckson Associates can be found online at http://www.reckson.com.