Rouse Properties' Stock Soars After Brookfield Makes Buyout Bid

Rouse Properties Inc.'s stock soared 26% in premarket trade Tuesday, after the real estate investment trust said it received an unsolicited buyout bid from Brookfield Asset Management for $17 a share. The per-share bid was 26% above Friday's closing price of $13.49. With about 58.02 million shares outstanding, according to FactSet, the bid would value Rouse at $986.3 million. Rouse said it established a special committee to evaluate Brookfield's bid. Brookfield is Rouse's largest shareholder, owning about 19.4 million Rouse shares, or about 33% of the shares outstanding, according to FactSet. Brookfield's stock was indicated more than 2% higher ahead of the open. Rouse's stock has tumbled 24% over the past three months through Friday, while the S&P 500 has lost 7.5%.

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