Another suit over Empire State Building IPO

Two investors accuse managers of rejecting higher offers for building

Published Wed, Jan 8, 2014 · 10:00 PM
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[NEW YORK] The Empire State Building's managers were sued for the second time in two weeks over their decision to take the iconic New York skyscraper public last year.

Hope Ratner and Mary Jane Fales, two of about 2,800 long-time investors in the 103-storey tower, filed the lawsuit on Monday in New York State Supreme Court in Manhattan. The plaintiffs, who seek class- action status for their complaint, accuse the managers, Peter Malkin and his son Anthony, of rejecting higher offers for the building, including one for about US$500 million more than investors received for their interests.

Empire State Realty Trust Inc, whose properties include the building, sold 71.5 million shares for US$13 each on Oct 1. The sale culminated an almost two-year quest by the Malkins to take the skyscraper and 20 other New York-area properties public, a process marked by battles with long-time investors.

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