Simon Weighs New Bid for General Growth

AP Source: Simon Property considers higher buyout offer for rival mall operator General Growth

By ALEX VEIGA AP Real Estate Writer
LOS ANGELES March 16, 2010 (AP) The Associated Press

Two people familiar with matter say shopping mall operator Simon Property Group Inc. is considering raising its $10 billion buyout offer for rival General Growth Properties Inc. as early as this week.

The two people familiar with a letter sent by Simon this week to General Growth say Simon anticipates boosting its offer above that of a deal put forth by a group of investors that includes two of General Growth's biggest creditors.

That means a new Simon offer would have to value General Growth above $15 a share.

Chicago-based General Growth, the nation's second-largest shopping mall operator, sought shelter from creditors last April. It was the largest real estate bankruptcy in U.S. history.

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