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https://www.nytimes.com/1986/08/07/business/50-cadillac-fairview-stake-for-sale.html
50% CADILLAC FAIRVIEW STAKE FOR SALE
By ALBERT SCARDINOAUG. 7, 1986
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August 7, 1986, Page 00001 The New York Times Archives
Cemp Investments Ltd., a Bronfman family concern, said yesterday that it had decided to sell its majority interest in the Cadillac Fairview Corporation, the largest publicly traded real estate development and management company in the United States and Canada.
Under Canadian law, any buyer who seeks to acquire the Bronfmans' 50 percent stake in Cadillac Fairview must also offer to acquire all other outstanding shares. In its statement, phrased to comply with the strict Canadian securities laws, Cadillac Fairview, which is based in Toronto, said it had retained Goldman, Sachs & Company and McLeod Young Weir Ltd. to seek offers to acquire all of the company.
On the Toronto Stock Exchange, trading in Cadillac's stock had been halted pending a statement concerning the company's future. After the announcement, Cadillac's stock jumped nearly $9 (Canadian), to close at $31.25, and analysts predicted the price might go above $35 a share.
At yesterday's closing stock price, the company's 72 million shares outstanding would be worth about $2.3 billion (Canadian), or about $1.7 billion (United States). Decided to Sell
Bernhard Ghert, the president of Cadillac Fairview, said that the owners of Cemp Investments - Edgar M. Bronfman Charles R. Bronfman and their sister, Phyllis Lambert, the three surviving children of Samuel Bronfman, creator of the Seagram distilling empire - decided last month to sell their interest if a satisfactory price were obtained.
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Analysts said the sale was the result of a decision by members of the Bronfman family to convert their holdings in the company to cash.
Outside of the Bronfman holdings, the largest block of Cadillac Fairview, about 20 percent, is in the hands of Olympia & York Developments Ltd. of Toronto, the privately held real estate company owned by the Reichmann family of Toronto. The Reichmanns had indicated in the past that they might seek to acquire more of Cadillac Fairview.
Olympia & York also owns a substantial portion of the Trizec Corporation, the second-largest publicly held real estate concern in the United States and Canada after Cadillac Fairview. The controlling interest in Trizec is held by Edward and Peter Bronfman, nephews of Samuel Bronfman. The nephews were forced out of Seagrams more than 25 years ago by Samuel Bronfman to make room for his sons, Edgar and Charles. Real Estate Partners
Cadillac Fairview owns and manages shopping centers, office buildings and business parks in major cities in the United States and Canada. Among its partners in recent developments have been the International Business Machines Corporation and the Metropolitan Life Insurance Company. The company lists assets of $3.8 billion (Canadian), or $2.8 billion (United States), and showed net income in the fiscal year ended in February of $58.3 million (Canadian), which is $42.3 million (United States).
Cadillac Fairview lost out in its first major effort to enter the United States real estate market, with an offer to buy the 77,000-acre Irvine Ranch in California in 1977. The company, however, was soon able to gain a footing and it took on major shopping centers and office projects in Los Angeles, Houston, Dallas, Atlanta and White Plains. Its last effort to start a project in New York ended in 1983 when it backed out of deal to build an office tower at Lexington Avenue and 52d Street. The parcel was later sold to Boston Properties Inc.