New York developer Harry Macklowe won a jury verdict that his company doesn’t owe Carl Icahn’s Meadow Star LLC $60 million for backing away from a 2006 bid to buy six New York skyscrapers from Reckson Associates Realty Corp.
Macklowe’s attorney, Roger Netzer, said a unanimous jury voted in favor of his client after two hours of deliberations in a lawsuit filed in 2008 by Meadow Star, an affiliate of Icahn Enterprises LP, in New York state court in Manhattan. A verdict was entered Oct. 19 for Macklowe, according to court records.
Meadow Star alleged Macklowe company WH Rome Partners LLC failed to put up its half of $1.2 billion to outbid SL Green Realty Corp. (SLG) for the Reckson buildings, according to court filings. SL Green paid $4.5 billion in cash and stock to buy all of Reckson’s holdings.
“A deal is a deal and Mr. Macklowe honored his obligations under the language of the contract that these very sophisticated parties had agreed to,” Netzer said yesterday in a telephone interview. Herbert Beigel, an attorney who represented Icahn’s company at trial, declined to comment about the verdict.
The aborted offer cost Icahn $60 million, according to his complaint. Netzer said Macklowe’s half of the bid wasn’t required unless certain conditions were met, including a signed acquisition agreement with Reckson and a guarantee that the bid wouldn’t exceed $1.2 billion.
The building purchase, which would ultimately cost $7 billion, fell through because lenders agreed to provide a minimum of $1.6 billion for the competing bid, which would have increased Macklowe’s share of the deal, said Netzer.
The case is Meadow Star LLC v. Harry Macklowe and WH Rome Partners LLC, 08-603165, New York State Supreme Court (Manhattan).
To contact the editor responsible for this story: Michael Hytha at email@example.com