Simon offers $10 billion for General Growth

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.

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Bloomberg News contributed
to this report.