Simon Reportedly Mulls General Growth Bid

INDIANAPOLIS (TheStreet) -- Simon Property (SPG Quote) has hired investment adviser Lazard and law firm Wachtell, Lipton, Rosen & Katz to help explore a potential bid for rival General Growth Properties, which is operating under Chapter 11 bankruptcy protection, a report says.

Simon Property Chairman David Simon previously has made public announcements that it would study General Growth for a potential acquisition. The mall operator, the biggest in the U.S., has amassed a $4 billion war chest through the sale of stock and bonds, the Wall Street Journal reports.

A Simon representative confirmed the company has hired the advisers.

General Growth, the second largest mall operator, is planning a reorganization of its business and is talking to lenders to restructure $11.5 billion in securitized mortgages. People familiar with the talks told the Journal that General Growth intends to file a reorganization plan in February.

Meanwhile, Australian mall owner Westfield, which reportedly has $6.8 billion in cash, is said to be closely monitoring General Growth's bankruptcy, the Journal reports. Westfield operates 55 malls in the U.S.