General Growth Wants Simon to Raise Bid

General Growth's board is set to meet later on Thursday to weigh whether to postpone a bankruptcy court hearing in light of competing offers from Simon and investors led by Brookfield Asset Management Inc. The source added that nothing had been decided and talks continue with both parties.

Simon has offered to pay $18.25 per share for General Growth. It would also pay holders of $7 billion in General Growth unsecured debt in cash and assume about $18 billion in mortgages and other property-level debt. General Growth has asked Simon to come up with a higher price, which remains a 'big issue', the source said, adding that could be part of the board's deliberations if Simon did so.

The two sides have also had a meeting on antitrust issues, where Simon came up with a proposal to allay concerns around merging the two largest U.S. mall owners, the source said.

Simon rejected a counter proposal, but General Growth may now come back with a new counteroffer on antitrust issues, the source said.

The two sides have also been working on putting together merger documents so that they are ready to go should they reach a deal, the source said.

General Growth and Simon representatives were not immediately available for comment. The source is not named because the discussions are not public.



Source: Reuters