Billionaire financier Carl Icahn charged ahead on Monday with an offer for New York office landlord Reckson Associates Realty for $49 a share after his two partners withdrew from the bidding.
But instead of all cash, the new offer comes in the form of cash and and units of American Real Estate Partners, which is 90% owned by Icahn.
The deal is valued at roughly $4.3 billion. Reckson shares fell more than 5% on Monday.
In a letter to Reckson's lead director Peter Quick, American Real Estate Partners, which owns real estate, gaming, and textiles, and other businesses, proposed paying $1 billion in cash and $3.3 billion in stock.
Should its bid be accepted, American Real Estate Partners through Reckson will have to pay a $99.8 million break-up fee to rival suitor SL Green Realty. The Reckson board had already approved SL Green's offer.
"There are a number of uncertainties and potential contingencies associated with the letter it just received that will need to be further evaluated," Reckson said in a statement.
SL Green, which owns office property primarily in Manhattan, has offered to pay Reckson shareholders $45.56 a share in cash and stock. Based on SL Green's trading price of $133.55 a share, the deal is worth roughly $4 billion and includes roughly $2.8 billion in cash.
Mack-Cali Realty which had joined forces with Icahn on the deal, dropped out on Saturday. It said the acquisition was not in its shareholders' best interest.
On Sunday, real-estate magnate Harry Macklowe also pulled out of the joint bidding.
SL Green, which last month said it would not match Icahn's offer, on Monday announced several unrelated deals boosting investment in Manhattan office properties and increased its quarterly dividend by 10%.