According to an article in the Wall Street Journal Simon has hired investment adviser Lazard Ltd. and law firm Wachtell, Lipton, Rosen & Katz to assist with the potential bid. GGP is readying to emerge from bankruptcy, potentially as soon as February, with a reorganized company.
As part of that process GGP is nearing a $11.5 billion deal with lenders to restructure securitized mortgages, which could close as soon as this week. The deal includes due-date extensions for the next three to nine years.
Simon has not confirmed publicly a pending bid for GGP, but as the Wall Street Journal article reports, the company has managed to raise $4 billion this year through the sale of stocks and bonds. For the third quarter, Simon saw funds from operations increase 2% to $473.1 million, $1.38 per diluted share. Despite the economy, this figure is up from 2008's FFO which was $463.9 million, $1.61 per diluted share.
For GGP, FFO per fully diluted share was $0.31 during Q3, while earnings per diluted share saw a loss of $0.38.
GGP currently owns or manages more than 200 shopping malls in 44 states. Simon owns or operates 387 properties throughout North America, Europe and Asia.
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