Simon Property Group Inc. (SPG) has offered to invest $2.5 billion in a General Growth Properties (GGP) reorganization at the same per-share price as the plan of reorganization sponsored by Brookfield Asset Management, Simon's CEO, David Simon, wrote in a letter to GGP management.
SPG's proposal is more favorable to GGP and its equity holders than the currently proposed plan of reorganization because it would eliminate the "highly dilutive" warrants that GGP proposes to issue to Brookfield, Pershing Square and Fairholme Capital, SPG says. The company's proposal also includes a $1 billion co-investment commitment by Paulson & Co.
GGP responded to the bid with a brief statement issued Wednesday. In its statement, the Chicago-based mall owner says it will "study the proposal consistent with its fiduciary duties."