Empire State Building Supervisors Reject New Bid as IPO Proceeds

Malkin Holdings LLC, the supervisor of New York’s Empire State Building, rejected a $1.4 billion offer for the title and lease to the tower and said it won’t entertain any more alternatives to an initial public offering.

The Malkins, who earlier this month rejected bids for interests in the skyscraper, said in a regulatory filing today that the $1.4 billion offer’s potential value would be materially less to investors. The company is “fully committed” to proceeding with an IPO of Empire State Realty Trust Inc., which would hold the tower and 20 other New York-area properties.

Thor Equities LLC, run by Joseph Sitt, last week offered $1.4 billion for the title to the 102-story tower, according to a letter from Stephen Meister, an attorney representing investors opposed to the IPO.

Lazard Ltd. acted as the Malkins’s independent adviser in evaluating the bids.

To contact the reporter on this story: Kara Wetzel in New York at kwetzel@bloomberg.net

To contact the editor responsible for this story: Christine Maurus at cmaurus@bloomberg.net

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