Thursday, May 6, 2010

Simon Property makes 'final' General Growth offer

INDIANAPOLIS — Mall owner Simon Property Group Inc. on Thursday made what it is calling its "best and final" offer to acquire its biggest rival, General Growth Properties Inc.

General Growth is the nation's second-largest mall operator with more than 200 centers in 43 states. When it sought shelter from creditors a year ago, it was the largest real estate bankruptcy in U.S. history.

Simon Property says its latest offer is worth $6.5 billion, or $20 a share, for General Growth. It had last offered $18.25 a share.

It said the latest offer tops a rival bid from a group led by Brookfield Asset Management.

Before the latest offer from Simon Property, General Growth said it preferred the bid by Brookfield, Pershing Square Capital Management and Fairholme Funds. The Brookfield-led group is offering more than $6.5 billion to help General Growth finance its exit from Chapter 11 bankruptcy court protection.

General Growth spokesman David Keating said the company had no immediate comment on the latest Simon Property bid.

U.S. Bankruptcy Court Judge Allan Gropper in New York is expected to hold a hearing Friday on a request by General Growth, which is based in Chicago, to have the Brookfield proposal approved.

The Indianapolis-based Simon Property is the largest U.S. shopping mall owner. It popularized the so-called lifestyle center mall design that turned malls into neighborhood-like communities. It owns more than 380 properties, including the Houston Galleria and the Fashion Valley Mall in San Diego.

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