Wednesday morning, the local mall REIT had announceda roughly $8.4 billion recapitalization plan with Toronto-basedBrookfield. The plan includes Brookfield investing $2.6 billion,GGP raising an additional $2.5 billion in cash through acombination of the issuance of new corporate level indebtedness andabout $1 billion in asset sales, and the company raising anadditional $3.3 billion in equity capital.

The GGP board had already dismissed an earlier proposal by Simonfor a $10 billion buyout, which would provide much quicker andsafer cash to creditors, said the Indianapolis-based mall giant ina statement Wednesday night.

"General Growth's proposed recapitalization amounts to a riskyequity play on the backs of its unsecured creditors," according toSimon's recent statement. "While continuing to block the immediateand certain 100% cash recovery provided by Simon's offer, GeneralGrowth has preempted its own self-proclaimed 'process' in favor ofa highly speculative and risky plan to attempt to raise $5.8billion of new capital in today's uncertain markets--including $3.3billion of dilutive new equity, $1 billion in asset sales and $1.5billion in new debt--on top of the approximately $28 billion italready owes. Simon is providing $10 billion of real value--$3billion to shareholders as well as $7 billion to creditors--ascompared to a complex piece of financial engineering that is sohighly conditional as to be illusory."