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.

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.

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.