Simon Properties offers General Growth $10B buyout

Mall owner Simon Property Group said Tuesday that it made a $10 billion offer to acquire its ailing rival, General Growth Properties.

The real estate company said its bid totals $7 billion to creditors and about $3 billion to General Growth shareholders. Simon also said its offer might be amended so shareholders could receive Simon stock instead of cash.

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The offer amounts to $9 per share for the Chicago real estate company, which filed for Chapter 11 bankruptcy protection last year. Parts of its plan to restructure $10.25 billion in debt related to 103 properties were approved in December.

Simon submitted its offer to the nation’s second-largest mall owner Feb. 8. But it made the offer public Tuesday, claiming it had not yet received a “substantive response” from executives.

A spokesman for General Growth, which owns or manages more than 200 U.S. malls, had no immediate comment on the deal.

Simon, the nation’s largest mall owner, is based in Indianapolis and owns more than 380 properties.

Its shares rose 23 cents in premarket trading to $72.23.

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