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Goldman Suspends Simon Property Group Rating
Update: Goldman is advising Brookstonefield. Explains it all.
GGP suitor SPG has just seen its rating suspended by Goldman Sachs. Usually this happens when Goldman is about to announce it is advising the company under consideration (in this case SPG) on a transaction. Will that be the case here? What is odd is the excuse provided by Goldman on why it is suspending its rating:
We have suspended our investment rating and price target on Simon Property Group (SPG) because there is not currently a sufficient basis for determining an investment rating or price target for this company. Our previous investment rating and price target are no longer in effect and should not be relied upon.
No sufficient basis for determining an investment rating? Obviously Jon Habermann has never consulted with his permaREITbullish friends over at Merrill.
One to watch closely.
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Damn!
Missed it by that much.
+1 HAHAHAHAAAA!
Anything to do with their bid on General Properties and Brookfield throwing in a bid as well?
Not sufficient to determine a rating... and yet sufficient to de-rate? Does sound a little strange. Sounds just like someone furiously back-pedaling, in fact.
Deciding that one cannot make a decision is, in fact, making a decision. Especially since immediately prior to this release there had been sufficient data to make a decision. What is this, GS deciding after it got out of bed that getting out of bed was a scary proposition so the decision is to just stand still and close their eyes? How very Goldmanesque.
I never like it when one of my shorts has a news item as obscure as this.
It could go either way.
Makes perfect sense. Goldman had sufficient information to determine an investment rating for SPG before. Now, that information has dissapeared. Vanished. Now SPG is just a black box. Or is it blue? We just don't know. Not sufficient basis!
SPG bonds in danger?
http://www.reuters.com/article/idUSN0256699720100222
Didn't get the M&A work on GGP?
That pile of stock has alot of flies darting for it now!
Goldman went all in short SPG at close.
The stock actually did go hard-to-borrow last Friday.
I wonder when the "Payback" begins inside these little fifedoms. Is there where all the financial guys start shiteing on each other?
That will be fun to watch.
"YOU SANK MY BATTLE SHIP!!!"
Simple Simon met a Goldman going to the fair;
Said Simple Simon to the Goldman "Let me taste your ware"
Said the Goldman to Simple Simon "Show me first your penny"
Said Simple Simon to the Goldman "Sir, I have not any!"
Sorry for being a little of topic and sorry if this has been posted before since the information is from 1985!!!!.......been there done that?:
"*****
COUNCIL DECISION
of 9 December 1985
concerning a Community loan in favour of the Hellenic Republic
(85/543/EEC)
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
Having regard to Council Regulation (EEC) No 682/81 of 16 March 1981 adjusting the Community loan mechanism designed to support the balance of payments of Member States (1), as amended by Regulation (EEC) No 1131/85 (2), and in particular Article 2 thereof,
Having regard to the proposal from the Commission, submitted after consultation of the Monetary Committee,
Whereas examination by the Commission, in collaboration with the Monetary Committee, of the economic situation of Greece has shown a marked deterioration in the balance of payments, a fall in the foreign exchange reserves and a rapid increase in external indebtedness; whereas these difficulties, because of their persistence are liable to jeopardize the proper functioning of the common market;
Whereas the Greek Government has applied for a medium-term loan under the Community loan mechanism designed to support the balance of payments of Member States; whereas the granting of such a loan is an appropriate measure, within the framework of mutual assistance, to facilitate the adjustment of the Greek economy;
Whereas the main reasons for the deterioration in the balance of payments of Greece are the absence of control over domestic factors, notably a sharp acceleration of inflation, a rapid rise in labour costs, a marked deterioration in the situation of the productive sector and a substantial over-run of domestic budgetary and monetary targets;
Whereas the Greek authorities have adopted an economic recovery programme and have presented this programme at the same time as their application for a loan; whereas the Commission has addressed to the Greek Government a recommendation on the measures which it suggests should be adopted; whereas the Greek authorities have approved the terms of the said recommendation;
Whereas the Greek Government, in implementing this recovery programme, undertakes to pursue, over a period of two years, and if necessary taking the appropriate corrective measures during the period, the following objectives:
1. a slowdown of inflation, so that the annual rate of price increase is brought down to 15 % at the end of 1986 and to under 10 % by mid-1987, excluding the effects of the introduction of value added tax from 1 January 1987;
2. a very appreciable slowdown in the upward movement of labour costs, through a lasting adjustment of the wage indexation mechanism based on an advance inflation norm and excluding from wage adjustments rises in import prices;
3. a reduction in the public sector borrowing requirement of 4 percentage points of the Gross Domestic Product in 1986 and of a similar amount in 1987;
4. a progressive but substantial reduction in domestic credit expansion to 17 % in 1986 and to 11 % in 1987 compared with 25 % in 1985 and a significant reduction in the proportion of the public sector borrowing requirement covered by monetary resources;
5. a reduction in the current account deficit so that as early as 1988 the external public debt can be stabilized in terms of absolute value;
Whereas the implementation of this programme is to give priority, within a medium-term perspective, to strengthening and modernizing productive structures; whereas as a result the conditions for the recovery of productive investment are to be established;
HAS ADOPTED THIS DECISION:
Article 1
The Community shall grant the Hellenic Republic, under Regulation (EEC) No 682/81, a loan of 1 750 million ECU or the equivalent amount in other currencies.
Article 2
The loan shall be made available to the Hellenic Republic in two equal instalments:
- the first instalment as soon as the borrowing operations are completed,
- the second instalment within one year of the payment of the first instalment, and, in any case, not before 1 January 1987, the Commission shall release the second instalment in the light of the examination, made in collaboration with the Monetary Committee of the evolution of the economic situation of the beneficiary Member State and the results obtained in the execution of the economic recovery programme, as implemented.
Article 3
1. The loan shall be granted on the basis of the decision taken by the beneficiary Member State to implement the economic recovery programme which it has presented, the objectives of which are set out in the recitals to this Decision.
2. The Commission, in collaboration with the Monetary Committee, shall examine at regular intervals the evolution of the economic situation of the beneficiary Member State and the execution of the economic recovery programme, as implemented.
Article 4
This Decision is addressed to the Hellenic Republic.
Done at Brussels, 9 December 1985.
For the Council
The President
J. SANTER
(1) OJ No L 73, 19. 3. 1981, p. 1.
(2) OJ No L 118, 1. 5. 1985, p. 59."
Source: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31985D0543:E...
The Dane
Well, this might help bring the junk ("safe haven") sector back down to earth. After all, with unemployment rising, interest rates going only one way from here on in and cap rates ditto, one would wonder why this didn't happen before...
Has the deal with GGP fallen through? Maybe GGP has balked? Can they? Wazzat...?
there is good banking biz to be done
who needs equity research!!??
SPG was going to throw a lifeline to GGP wooing them with their charms. However, it became obvious that SPG was an abusive alcoholic and degenerate gambler. After a brief affair with Dr. Feelgood GGP decided to play the field. They are content with a quickie elopement with wham BAM thank you ma'am but if anyone better turns up in the meantime they will throw them over the side as well. This leaves SPG spurned at the altar, unloved and without hope. Tune in tomorrow for another episode of As the World Turns.
Simon - Fewer Choices
I've reloaded puts on this whore every month for almost a year now. One of these days...
All I know is that I have witnessed the deterioration of some of Simon's simply splendid properties. Simon's model was not only rental of the retail, but the partaking in the sales of said retail spaces. With Mr. and Mrs. Average Joe not able to roll their credit card purchases back into their home, sales at Simon’s simply splendid retail bazaars have declined considerably. The food stamp processing center of Goldman Sacks-of-shit is working overtime in order to give Simon’s serfs ability to purchase the complete line of clothing for some fucking stuffed bear. Hell, the children can even choose to stick a big old pipe up the ass of their choice animal emulating the past few years of their parent’s indentured servitude.
I can rate SPG as something to stay away from like a whore with open festering sores. Then again I don't work in the field of accounting fraud, government supported stocks, or manipulated currency markets. For all I know in this bizaro world, perhaps putting everything I own into this death spiral business model could make me a gazillionaire and get me a spot at the table with the squid. I too could live the American dream.
thanx for the announcenent; I'm sure I don't get it, yet; I have read the lead up to Mall deal in Bloomberg; someone is going to poke a hole in their spacesuit, sooner or later;
Hey Dick,
"Poke a hole in the spacesuit", "stick a big pipe up the ass" or maybe just lay a little sauce in the old pie hole...
Retail stocks and CRE hanging at 52 week highs has dirty whore written all over it.
I can tell you, that here in Atlanta, malls are mostly deserted except for the moviegoers. Much boarded up mall space. FWIW.
There's some traffic in the food court....
Wonder how they are going to fuck over the shorts now. Simon Jr goes on tv and shows that he can actually felate himself in front of large paying crowds.
Didn't GS put SPG on the conviction buy list as they promoted their last fund raising. Surely, by now, no one pays any attention to the pontifications of the conflicted, discredited and fraudulent squid.
http://www.globest.com/news/1606_1606/chicago/183716-1.html
"General Growth's proposed recapitalization amounts to a risky equity play on the backs of its unsecured creditors,” according to Simon’s recent statement. “While continuing to block the immediate and certain 100% cash recovery provided by Simon's offer, General Growth has preempted its own self-proclaimed 'process' in favor of a highly speculative and risky plan to attempt to raise $5.8 billion of new capital in today's uncertain markets -- including $3.3 billion of dilutive new equity, $1 billion in asset sales and $1.5 billion in new debt -- on top of the approximately $28 billion it already owes. Simon is providing $10 billion of real value -- $3 billion to shareholders as well as $7 billion to creditors -- as compared to a complex piece of financial engineering that is so highly conditional as to be illusory."
I no sooner read this in my email (Hint.. Hint... Tyler) than I clicked and *POOF* I was here to read an amazing piece of back story... Thank You(s) Tyler!
Goldman Smaks: "I AM the market!"
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