General Growth Properties Inc. (GGP), the bankrupt mall owner, has sent a letter to Simon Property Group Inc. in response to Simon's unsolicited indication of interest to acquire GGP. On Tuesday, Simon made public its $10 billion bid for GGP.
In its letter, GGP reiterates its process for exploring all potential alternatives for emergence from bankruptcy. These alternatives include a stand-alone restructuring funded with institutional equity capital, as well as potential business combinations.
‘We and our board of directors have given considerable thought to your indication of interest and have concluded, based on discussions with other interested parties, that it is not sufficient to preempt the process we are undertaking to explore all avenues to emerge from Chapter 11 and maximize value for all of [GGP's] stakeholders," Adam Metz, GGP's CEO, wrote to Simon's chairman and CEO, David Simon.
Metz additionally wrote that GGP is "about to commence a process to explore several potential options for the company's emergence from Chapter 11, including a sale of the entire company as you have proposed as well as a capital raise."
Metz invited Simon to participate in the process so that GGP may evaluate Simon's indication of interest in the context of other options.
SOURCE: General Growth Properties
