Simon had offered $20 a share to take over GGP, even thoughGeneral Growth hasn't seen that price since late 2008. Since thehearing started at 10 a.m. this morning, GGP's stock fell from$15.80 per share to a low of $14.

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Brookfield pledged to help bring GGP out of bankruptcy bypurchasing GGP stock at $10.50 per share, resulting in a $6.5billion equity investment and $2 billion capital backstop offer,which includes assistance from Pershing Square Capital Managementand Fairholme Funds. The Brookfield deal comeswith several million dollars in warrant fees to GGP, thoughBrookfield has agreed to postpone some of the costs.

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Simon issued a statement after the hearing was over that it isnow out of the entire GGP bankruptcy process. "We are disappointedthat the GGP board hastily decided in less than 24 hours to acceptsubstantially less value, rather than take more time to fullyassess the benefits of SPG's offer and enter into negotiations tomake this value available to GGP shareholders," said David Simon,chairman and CEO. "For many months, SPG has tried to workcollaboratively and productively with GGP to bring our proposals tofruition. SPG has been highly flexible, making numerous changes toits proposals in response to requests from GGP, its stakeholdersand its advisors. GGP's decision to proceed with a transaction thattransfers hundreds of millions of dollars in value to theBrookfield consortium has caused us to conclude that we cannotreach a mutually beneficial transaction with GGP. As a result, itis in SPG's best interests to withdraw our proposals and decline toparticipate in the bidding process in the GGP bankruptcy," Simonsaid.

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Also this morning, William Ackman with Pershing Square, in partto keep GGP from considering the latest Simon offer, agreed toforego its right to receive interim warrants to purchase 17 millionshares of GGP as consideration for its stock purchase commitment insupport of GGP's standalone plan of reorganization – in effect,giving up more than $120 million. "For GGP to hand over its keys toits main competitor subject to government approval is reckless inour view. SPG has as much, if not more, to gain from thedestruction of General Growth than from its acquisition."

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As a result of the hearing, Brookfield is now a "stalking horse"bidder, meaning that it's possible a firm or group could makeanother offer for GGP, but it would have a high climb to beat theBrookfield bid. A General Growth spokesman refused to comment onthis story.

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