February 16, 2010
Simon Property Group (SPG: 167.22 +1.01%) has bid $10B for General Growth [GGWPQ.PK]. This comes as little surprise as there has been plenty of talk about Simon seeking to swallow the troubled owner of malls.
The bidding likely will go higher as General Growth also seeks alternative financing from other groups as a way to stay independent. Bill Ackman of Pershing Square is General Growth’s largest investor with some 20-25% of the equity under his belt. Ackman stands to make a huge profit on General Growth.
At the price offered, Simon’s valuation of General Growth represents an 8% cap.
- General Growth Properties To File For Bankruptcy “Soon”
- Simon Property Group Snaps Up Prime Outlets For $2.3B
- Lender Moving In On Hayward’s Southland Mall
- Investors Wary of Writing Blank Checks
- General Growth Finally Files for Chapter 11 Bankruptcy