Simon Could Raise Bid for General Growth
INDIANAPOLIS (
) --
Simon Property
(SPG) - Get Report
is readying a new takeover bid for bankrupt rival
General Growth Properties
that would top offers from several General Growth investors, the
Wall Street Journal
reports, citing a letter sent by Simon to General Growth's lawyers.
Simon didn't outline the details of its offer, but said it expects to deliver its improved proposal late this week or early next, people familiar with the matter told the newspaper. Simon also assured General Growth of resolving antitrust concerns arising from the deal.
Last month, Simon offered to buy General Growth for more than $10 billion.
Simon is working in tandem with private-equity company
Blackstone
(BX) - Get Report
and two unidentified sovereign-wealth funds to come up with a better offer. In addition, it also is lining up a $6 billion credit line led by
JPMorgan Chase
,
Citigroup
and
Morgan Stanley
among others to help finance the bid, Simon's letter said.
When asked about the letter, Simon Chairman and CEO David Simon told the
Journal
, "We've made no final decision on what we're going to do."
Simon's offer would need to top a recapitalization proposal unveiled earlier this month by
Brookfield Asset Management
(BAM) - Get Report
and General Growth investors Fairholme Capital Management and Pershing Square Capital, which would split General Growth into two entities upon emerging from bankruptcy valuing it at $15 a share.
Follow TheStreet.com on
and become a fan on
