Battlefield Mall owner offers to buy Branson Landing manager

Simon Property Group (NYSE: SPG), owner of Springfield's Battlefield Mall, is making a play to purchase General Growth Properties (OTC: GGWPQ), which manages Branson Landing. But GGP isn't jumping at the offer.

Indianapolis-based Simon, which is owner or part owner of 382 retail properties in North America, Europe and Asia, made public Tuesday its $10 billion purchase offer for Chicago-based General Growth, which filed for Chapter 11 bankruptcy in April after unsuccessfully trying to restructure its debt.

General Growth shareholders would receive $9 per share or Simon common equity, and Simon would pay all General Growth unsecured creditors, to the tune of roughly $7 billion.

The committee of General Growth's unsecured creditors supports the offer, according to a Simon news release. The company first made the offer privately to General Growth's board on Feb. 8 but had received no response, prompting Simon to make the hostile takeover bid public.

"Simon is in the unique position of being able to offer General Growth creditors and shareholders full, fair and immediate value," Simon Chairman and CEO David Simon said in the release. "We are confident it is the best option for all General Growth constituencies and far superior to any other third-party proposal or stand-alone plan that could be completed."

In its response to Simon, General Growth said the offer "is not sufficient to pre-empt the process we are undertaking to explore all avenues to emerge from Chapter 11."

General Growth took over management of Branson Landing in August 2008, but the lakefront shopping center is not included in the bankruptcy proceedings as GGP manages the property but HCW Development Co. LLC is the owner. GPP owns or manages more than 200 regional shopping malls in 44 states.[[In-content Ad]]