General Growth rejects Simon's 'final' purchase bid

Shopping center management company General Growth Properties Inc., which counts Branson Landing among the properties it runs, has rejected another purchase bid from Battlefield Mall owner Simon Property Group Inc.

According to Bloomberg, GGP's board on Friday backed a financing proposal led by Brookfield Asset Management Inc. to purchase the assets of the company, which is currently proceeding through bankruptcy.

The day before, Simon had increased its offer to purchase Chicago-based GGP to $6.5 billion, or roughly $20 a share. The offer included $5 per share in cash, $10 in shares of stock in Indianapolis-based Simon, and $5 in shares in a new company, General Growth Opportunities. Simon would also pay all of GGP's unsecured creditors, totaling roughly $7 billion.

"These offers are best and final,” Simon CEO David Simon said in a letter to General Growth’s board.

General Growth President Thomas Nolan said in testimony in U.S. Bankruptcy Court that the Brookfield-led plan is better in part because the Brookfield proposal would allow General Growth to remain an independent company.

GGP - the second-largest mall manager in the company behind Simon - filed for bankruptcy in April 2009 after amassing $27 billion in debt through acquisitions, according to Bloomberg coverage. In addition to Branson Landing, GGP operates South Street Seaport in New York and the Grand Canal Shoppes and Fashion Show in Las Vegas.

While GGP began managing Branson Landing in August 2008, it is not included in the bankruptcy as the property is still owned by developer HCW Development Co. LLC.[[In-content Ad]]