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Westfield Group enters General Growth fray, source says

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Westfield Group, a Sydney-based owner with stakes in 55 U.S. malls, signed a non-disclosure agreement to receive information from bankrupt General Growth Properties Inc., a person familiar with the pact said.

A similar agreement was signed by Simon Property Group Inc., the largest U.S. shopping mall owner, which last week offered to buy Chicago-based General Growth, its biggest rival, for more than $10 billion, said the person, who asked not to be identified because the pacts are private.

General Growth yesterday announced plans to split itself into two companies as part of an effort to exit Chapter 11 bankruptcy. The proposal, which must be approved by a bankruptcy court judge, includes a $2.63 billion investment from Brookfield Asset Management Inc. Indianapolis-based Simon dismissed the plan as “a complex piece of financial engineering that is so highly conditional as to be illusory.”

Westfield spokeswoman Julia Clarke declined to comment Thursday. Westfield has been “watching the situation” at General Growth, Managing Director Steven M. Lowy said last week in a conference call with analysts and investors.

Westfield has $8 billion of borrowing capacity on hand, and is thus far acting along, said the Wall Street Journal reporter earlier, citing people familiar with the matter.

Additional offers may emerge, General Growth President Thomas H. Nolan Jr. said in an interview on Wednesday.

“We feel very good about the Brookfield proposal,” Nolan said. “Given the bankruptcy bidding rules, there can be other bidders. They can come forward at any point in the process.”

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  1. The east side does have potential...and I have always thought Washington Scare should become an outlet mall. Anyone remember how popular Eastgate was? Well, Indy has no outlet malls, we have to go to Edinburgh for the deep discounts and I don't understand why. Jim is right. We need a few good eastsiders interested in actually making some noise and trying to change the commerce, culture and stereotypes of the East side. Irvington is very progressive and making great strides, why can't the far east side ride on their coat tails to make some changes?

  2. Boston.com has an article from 2010 where they talk about how Interactions moved to Massachusetts in the year prior. http://www.boston.com/business/technology/innoeco/2010/07/interactions_banks_63_million.html The article includes a link back to that Inside Indiana Business press release I linked to earlier, snarkily noting, "Guess this 2006 plan to create 200-plus new jobs in Indiana didn't exactly work out."

  3. I live on the east side and I have read all your comments. a local paper just did an article on Washington square mall with just as many comments and concerns. I am not sure if they are still around, but there was an east side coalition with good intentions to do good things on the east side. And there is a facebook post that called my eastside indy with many old members of the eastside who voice concerns about the east side of the city. We need to come together and not just complain and moan, but come up with actual concrete solutions, because what Dal said is very very true- the eastside could be a goldmine in the right hands. But if anyone is going damn, and change things, it is us eastside residents

  4. Please go back re-read your economics text book and the fine print on the February 2014 CBO report. A minimum wage increase has never resulted in a net job loss...

  5. The GOP at the Statehouse is more interested in PR to keep their majority, than using it to get anything good actually done. The State continues its downward spiral.

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