CHICAGO-General Growth Properties now favors a revisedreorganization plan by Brookfield Asset Management, in part toavoid merging with rival mall owner Simon Property Group, accordingto a Wall Street Journal report today. The choice will bemade before Wednesday, when a bankruptcy judge will decide ifBrookfield should get "stalking horse" status for the JohnBucksbaum chaired GGP.

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Details are still being worked out, but Brookfield has offeredto buy GGP stock at $10.50 per share, 50 cents higher than theprevious offer, and has pledged to vest 40% in warrants until Nov.30, according to the WSJ story. J. Bruce Flatt is CEO and seniormanaging partner of Brookfield.

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In its bid, Simon has offered toacquire 250 million shares of common stock in GGP for $2.5billion in the aggregate, or $10 per share. Simon would also enterinto agreements on the same basis as Brookfield with respect to therecapitalization of GGP and the planned spin-off of a seconddistressed-asset class.

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Simon has said its offer is better, and cheaper, as theIndianapolis-based mall giant’s offer doesn’t require almost $1billion in warrant fees. The Wall Street Journal report says thatBrookfield kept the warrants in its latest offer, but agreed todelay the 40%. You can read that story here.

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