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Simon offers $10 billion for General Growth

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Simon Property Group Inc. on Tuesday morning announced a $10 billion offer to acquire Chicago-based General Growth Properties Inc. out of bankruptcy.

The acquisition would be the largest ever for Simon, already the nation’s largest mall owner. General Growth has 200 properties and $3.4 billion in revenue.

Simon says its bid includes $7 billion to creditors and about $3 billion to General Growth shareholders. The company also said its offer might be amended so shareholders could receive Simon stock instead of cash.

The offer amounts to $9 per share for shareholders of General Growth, which filed for Chapter 11 bankruptcy protection last year. Parts of its restructuring plan were approved in December.

“Simon’s offer provides the best possible outcome for all General Growth stakeholders,” David Simon, Simon’s chairman and chief executive officer, said in a statement Tuesday. “Simon is in the unique position of being able to offer General Growth creditors and shareholders full, fair and immediate value. Our offer provides much-needed certainty to conclude General Growth’s protracted reorganization process.”

Simon said it submitted its offer on Feb. 8 but made the offer public Tuesday, claiming it had not yet received a "substantive response" from executives.

General Growth filed the biggest real-estate bankruptcy in U.S. history in April after amassing $27 billion in debt during an acquisition spree. At the time of the filing, the company said it had about $11.8 billion in debt that had matured or was due by the end of 2012.

A spokesman for General Growth had no immediate comment on the deal.

Simon shares rose 23 cents in premarket trading Tuesday to $72.23.

Click here to see the latest update on this story.

Bloomberg News contributed to this report.

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  • General Giagantor!
    Isn't there anyone out there who can stop this conglomerate? Pretty soon all retail buildings, malls, restaurants, gas stations, grocery stores, etc. will be offered only through the good graces of...you guessed it...Simon!
  • GGP was Major Player
    http://www.ggp.com/ggpintro.aspx
  • General Growth?
    Who is General Growth? What properties do they have? Which part of the mall sector do they go after? High end? Low end?

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  1. Kent's done a good job of putting together some good guests, intelligence and irreverence without the inane chatter of the other two shows. JMV is unlistenable, mostly because he doesn't do his homework and depends on non-sports stuff to keep HIM interested. Query and Shultz is a bit better, but lack of prep in their show certainly is evident. Sterling obviously workes harder than the other shows. We shall see if there is any way for a third signal with very little successful recent history to make it. I always say you have to give a show two years to grow into what it will become...

  2. Lafayette Square, Washington Square should be turned into office parks with office buildings, conversion, no access to the public at all. They should not be shopping malls and should be under tight security and used for professional offices instead of havens for crime. Their only useage is to do this or tear them down and replace them with high rise office parks with secured parking lots so that the crime in the areas is not allowed in. These are prime properties, but must be reused for other uses, professional office conversions with no loitering and no shopping makes sense, otherwise they have become hangouts long ago for gangs, groups of people who have no intent of spending money, and are only there for trouble and possibly crime, shoplifting, etc. I worked summers at SuperX Drugs in Lafayette Square in the 1970s and even then the shrinkage from shoplifting was 10-15 percent. No sense having shopping malls in these areas, they earn no revenue, attract crime, and are a blight on the city. All malls that are not of use should be repurposed or torn down by the city, condemned. One possibility would be to repourpose them as inside college campuses or as community centers, but then again, if the community is high crime, why bother.

  3. Straight No Chaser

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  5. Gary, I'm in complete agreement. The private entity should be required to pay IPL, and, if City parking meters are involved, the parking meter company. I was just pointing out how the poorly-structured parking meter deal affected the car share deal.

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