Several investors have sued to block a proposed initial public offering by the owner of the Empire State Building, saying it unfairly undervalues their interests.
The Malkin family, which controls the company that owns the iconic 102-story skyscraper, is trying to engineer a "one-sided" transaction that leaves smaller investors in the dark about whether the possible $1 billion IPO is fair, a complaint filed Thursday with the New York state court in Manhattan showed.
Plaintiffs include investors in companies whose equity could be converted into stock of the Malkins' proposed new company, Empire State Realty Trust.
That company would be a real estate investment trust whose holdings would include 12 office buildings, six retail properties and land in New York and Connecticut. Last month, the Malkins filed with the US Securities and Exchange Commission for the IPO, which would consolidate several privately held companies. The shares would be listed on the New York Stock Exchange under the ticker symbol "ESB."