Mall Owner Gets Buy Out Offer

Simon Property Group has made a $10 billion offer for General Growth Properties, owner of three San Fernando Valley area shopping malls. General Growth shareholders would receive $9 per share in the proposed deal. The Chicago-based firm that owns the Glendale Galleria, Burbank Town Centre and Northridge Fashion Center filed for bankruptcy in April 2009. The offer from Simon would bring to a close General Growth’s protracted reorganization process, said Simon Group Chairman and CEO David Simon. “We are confident it is the best option for all General Growth constituencies and far superior to any other third-party proposal or stand-alone plan that could be completed,” Simon said. In a letter from Simon to General Growth CEO Adam Metz, Simon said that the firm has access to all the financial resources needed to close the deal and that no contingency or conditions will be necessary. Mark R. Madler