Reckson Board Rejects Icahn Bid

Real estate investment trust Reckson Associates Realty Tuesday rejected a takeover bid from billionaire Carl Icahn, favoring a competing bid from SL Green Realty.

Reckson issued a statement saying the independent directors of its board had determined that Icahn's bid raised "significant financial and legal issues."

The latest offer from Icahn amounted to $4.3 billion, composed of $1 billion in cash and $3.3 billion worth of shares in American Real Estate Partners LP, of which Icahn owns about 90%.

Reckson said the shares offered could be worth substantially less, reducing the overall value of the deal. It is now going ahead with a special shareholder meeting on Wednesday to vote on the offer from SL Green, worth about $3.8 billion.

Icahn last week had two partners for his bid, Mack-Cali Realty Corp. and real estate investor Harry Macklowe, but both backed out over the weekend.

Uniondale, N.Y.-based Reckson owns office buildings in the New York, Connecticut and New Jersey area near New York City. Among its properties is 1350 Avenue of the Americas, which has tenants such as Harper Collins and Burberry.