Before any deal would be made certain things need to be workedout, Roth says, like Mills financial filings, which are beingrestated from 2000 through last year's first three quarters. AddsMichael Fascitelli, Vornado's president and trustee, "If the rightvalue is there, it's interesting."

A deal for Mills, which Fascitelli estimated to be worth about$9 billion, would not be unusual for Vornado. The company was partof a team of investors last year that acquired the Toys "R" Uschain for $6.6 billion. Last year Vornado also purchased a$500-million stock-stake in McDonald's and invested $337 million inSears, Roebuck & Co. in 2004. Vornado, Indianapolis-based SimonProperty Group, General Growth Properties of Chicago and othercompanies have all been rumored as possible Mills buyers.

Mill's troubles were made public, for the most part, last yearwhen third-quarter NOI fell 5.2%, to $104.7 million, from the sameyear-ago period, while FFO dropped 53.6%, to $0.45 per share. Thoseplunges were due, in part, to a variety of charges taken on inregard to projects in the company's pipeline and failure to collectsome rents. The company, which owns 42 retail properties in the USand Europe, has since laid off 77 employees in a move forecast tosave it $1.2 million in this year's first quarter. Mills executiveshave also said they are suspending some projects in theirdevelopment pipeline, but are still planning on developing the4.7-million-sf Meadowlands Xanadu, a retail-entertainmentdestination in Bergen County, NJ.