Forest City Enterprises Cl A (FCE.A)

[Enterprising Investor]

Third Avenue Value Fund purchases 2,415,458 million shares.

The cost was $6.60 per share in that company’s common stock offering. The offering raised $330 million from the issuance of 52.3 million shares, including the full exercise of the over-allotment by the underwriters. The proceeds, which were intended to repay outstanding borrowings under Forest City’s revolving credit facility, further strengthened the company’s balance sheet, which is primarily funded with non-recourse borrowings. Following this offering, Forest City Senior Unsecureds appreciated in price and the Fund has not been able to add to its $85.6 million (face) position at attractive prices.

http://thirdave.com/ta/documents/sl/shareholderletters-09Q3.pdf#TAVFX

http://sec.gov/Archives/edgar/data/38067/000129993309002243/exhibit2.htm