Simon Reportedly Mulls General Growth Bid - TheStreet

Simon Reportedly Mulls General Growth Bid

Mall operator Simon Property has hired an adviser as it considers a bid for bankrupt rival General Growth, a report says.
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INDIANAPOLIS (

TheStreet

) --

Simon Property

(SPG) - Get Report

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.