May 27, 2006

Hedge Fund Investment Boosts Mills Stake

According to reports, a major hedge fund investor in Mills Corp. has increased its stake in the embattled mall developer. The hedge fund investor, Stark Investments has purchased 720,000 shares in the company since March. Now it controls 4.95 million shares, which is 8.7% of Mills' stock. Stark sources revealed that they were buying shares for investment purposes. However, they may seek to control management in the future.

There are some other investors that have expressed interest in Mills. Simon Property Group, Vornado Realty Trust and Westfield are said to have contemplating plans to invest in Mills. Mills has been exploring a sale of the company or assets as it deals with shareholder lawsuits and SEC investigation related to financial restatement. Mills has set a deadline for June 13 for letters of interest from prospective buyers. Recently, the company has entered into customary confidentiality agreements with potential buyers and investors. It has been reported that some of these potential buyers have expressed interest in some of the company's assets.

More Information: Read Here

In a research note, Bank of America analyst Ross Nussbaum provided additional color on his conversations with Mills' management this week at the annual International Council of Shopping Centers conference in Las Vegas.

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