Rouse Agrees To Be Acquired After Brookfield Raises Bid

Rouse Properties Inc. agreed on Thursday to be acquired by real estate asset management company Brookfield Asset Management Inc. in a deal valued at $2.8 billion, after Brookfield raised its per-share bid by 7.4%. Under terms of the deal, Brookfield will pay $18.25 for each Rouse share outstanding, up from the original offer made in mid January of $17 a share, and 2.8% above Wednesday's closing price of $17.75. The deal is expected to close during the third quarter of 2016. Rouse said it will not declare its regular quarterly dividend before the deal closes. "After careful consideration, the Special Committee determined that Brookfield's increased proposal provides shareholders with compelling value as well as a high degree of execution certainty, further validating the strength of the platform that Rouse has built," said David Kruth, chairman of the special committee that rouse created to study the buyout bid. The real estate investment trust's stock, which was still inactive in premarket trade, has declined 10% over the past three months, while the S&P 500 has lost 7.6%.