CHICAGO-General Growth Properties now favors a revised reorganization plan by Brookfield Asset Management, in part to avoid merging with rival mall owner Simon Property Group, according to a Wall Street Journal report today. The choice will be made before Wednesday, when a bankruptcy judge will decide if Brookfield should get "stalking horse" status for the John Bucksbaum chaired GGP.
Details are still being worked out, but Brookfield has offered to buy GGP stock at $10.50 per share, 50 cents higher than the previous offer, and has pledged to vest 40% in warrants until Nov. 30, according to the WSJ story. J. Bruce Flatt is CEO and senior managing partner of Brookfield.
In its bid, Simon has offered to acquire 250 million shares of common stock in GGP for $2.5 billion in the aggregate, or $10 per share. Simon would also enter into agreements on the same basis as Brookfield with respect to the recapitalization of GGP and the planned spin-off of a second distressed-asset class.
Simon has said its offer is better, and cheaper, as the Indianapolis-based mall giant’s offer doesn’t require almost $1 billion in warrant fees. The Wall Street Journal report says that Brookfield kept the warrants in its latest offer, but agreed to delay the 40%. You can read that story here.
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