Maguire directors oust founder

The real estate investment trust board members voted to replace Robert F. Maguire III with executive Nelson Rising and board member Walter Weisman.

May 19, 2008: 12:35 PM EDT

LOS ANGELES (AP) -- Maguire Properties Inc. directors voted to oust company founder Robert F. Maguire III as the real estate investment trust's chief executive and chairman, officials announced Monday.

Board members voted to name former Maguire executive Nelson Rising as its new chief executive and to install board member Walter Weisman as company chairman, company officials said in a news release.

Maguire Properties (MPG) owns the US Bank Tower in downtown Los Angeles, the tallest building on the West Coast, and dozens of other major properties in the region.

"I look forward to working with our team to navigate our near-term challenges and best position the company for the future," Rising, who gained prominence as chief executive of Denver-based developer Catellus Corp., said in the release.

The Maguire board also voted Saturday to suspend the quarterly dividend on its common stock, the company said.

Company shares were up 5 cents to $15.25 in morning trading Monday.

Maguire Properties also announced Monday that Maguire, who stepped down from the company's board and was named chairman emeritus, had withdrawn his proposal to acquire control of the company. The 73-year-old reportedly was pursuing a deal to buy part of his company as recently as late last week.

Maguire spokeswoman Peggy Moretti did not immediately return a call seeking comment.

The company describes itself the largest commercial real estate developer and owner in downtown Los Angeles.

But its poor performance in recent months has led to a power struggle, with some major investors disparaging the role played by Maguire and demanding better financial performance.

The company has long underperformed its office peers and lost many tenants in its Orange County properties that were involved in the subprime mortgage industry.

Maguire Properties also has been criticized for spending $2.8 billion to buy a portfolio of 24 office buildings in Los Angeles and Orange County in February 2007.

In December, the board of directors created a special committee chaired by Weisman to consider alternatives, including the sale of the company.

The company rebuffed an offer from Maguire in late April to buy three-quarters of the firm's assets. But he still reportedly was talking to his partner in the proposed deal, Brookfield Properties Corp., as recently as Thursday.

Brookfield spokeswoman Melissa Coley declined to comment Monday.

Maguire, who has been developing office buildings since 1966, welcomed Rising's return to the company in the news statement.

"He was a valued partner of mine before and is an exceptional executive," he said. "I am very enthused to have him taking over for me."