BG2008 Posted June 5, 2020 Share Posted June 5, 2020 A couple years ago, many members of CoB were screwed over by Brookfield in the Teekay take private. During that period, I mentioned that I wanted to curate a list of bad actors in the public market. I really want to make this topic something that we can all use as reference in the future. Now that there is an active dialogue on DTLA preferred which once again involves Brookfield, it is time to bring up the topic. 1) Brookfield - If you want to own Brookfield, just own BAM. You can be a fanboy. I don't give 2 rat's ass. But this is fair warning to people that if you are find one of Brookfield's entities (non-Bam) trading at a cheap price, please understand that there is a good reason. The public market does not trust these guys. This is the financial #Me_TOO moment. TOO was the ticker for Teekay Offshore. The #Me_TOO is to remember that Brookfield screwed the Teekay Offshore shareholders. They took advantage of the fact that it is a limited partnership and that people did not have any appraisal rights. The take private was offered at a discount to the then publicly traded price. Here are the timelines https://bbu.brookfield.com/press-releases/2017/07-27-2017-035001869 Brookfield initially bought 60% of Teekay at $2.50 per unit plus warrants then https://privatecapitaljournal.com/brookfield-to-take-teekay-offshore-partners-private-in-us-430m-deal/ Brookfield offered to buy rest of Teekay for $1.05 per unit https://www.globenewswire.com/news-release/2020/01/23/1974173/0/en/Teekay-Offshore-Partners-Announces-Completion-of-Its-Acquisition-by-Brookfield-Changes-to-Board-of-Directors-and-Plan-to-Rebrand-as-Altera-Infrastructure.html After a really good fight from JDP Capital, Brookfield finally upped their offer at $1.55 per unit Yes, Brookfield is acting in best interest of BAM. I agree with that. But Brookfield mistreated the TOO shareholders. So this thread is to remind people that if you don't own BAM, EXPECT TO GET SCREWED. For more info, you can reference the Teekay Offshore Thread here at CoB 2) DTLA Preferred - Brookfield refuses to pay the preferred of a DTLA office acquisition that they did in the early 2010s. There is a thread on this. Again, Brookfield is doing what is right for BAM. But, this is warning to all that if you own anything that is Brookfield related that is not BAM, EXPECT to get screwed. This is a warning. I hope that #ME_TOO starts trending on twitter. 3) Bridgemarq Real Estate Services used to be called Brookfield Real Estate Services - They changed the terms of the agreement a couple years ago. I need to dig out the details. But BAM basically gets more fixed rate fees. Bridgemarq basically exist for BAM to extract fees. There is a reason why it trades at a high single digit low teens payout yield despite being a very good royalty business for Canada's real estate brokers. These things should trade for 4-5% yield. But people understand that it exists to create wealth for BAM and hence it trades at such a high yield because you never know when BAM will screw you. I request that people don't clog this thread by defend BAM and Brookfield for doing what's right for BAM. I agree with that. Yes, they are maximizing value for BAM. But there is a side that got screwed and that is the side that I am highlighting. You may say BG2008, you were too obtuse and you should have known that Brookfield is a bad player and it is your fault that you got screwed by Brookfield. Again, don't clog this thread with this. My goal is to source all of our knowledges and create a robust list of bad actors. 4) JW Mays - The CEO doesn't want to do jack. The real estate is worth a lot but he won't pay a dividend, won't put any debt on the company, and don't give a rat's ass about minority shareholders. I hope others can fill in this list and we can all search this database. There is a glimmer of hope that this list becomes well known. Link to comment Share on other sites More sharing options...
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