As Simon Property Group prepares to step up its game in its bid to takeover bankrupt mall owner General Growth Properties, Brookfield Asset Management is in talks to bring two new hedge funds into its competing plan. Elliott Associates and Paulson & Co. are reportedly in talks to join Brookfield in its bankruptcy exit plan for General Growth, either as replacements for or additions to Fairholme Capital Management and Pershing Square Capital Management, which have already committed to their involvement. Luxor Capital Group and other funds may also be involved, sources told Bloomberg. “Even with Brookfield-Fairholme-Pershing’s commitment, [General Growth] management has been seeking to raise additional capital at more attractive terms,” said analyst Benjamin Yang of Keefe Bruyette & Woods, who was not surprised by reports of the latest negotiations. General Growth, which owns the South Street Seaport, rejected a $10 million buyout offer by competitor Simon Property Group last month that amounted to $9 per share, and Simon is said to be prepping another offer. As it stands, the Brookfield deal, which is pending bankruptcy court approval, would result in $15 per share for equity holders. [Bloomberg]
Brookfield recruiting more capital for General Growth plan bid
TRD New York /
Mar.March 23, 2010 09:47 AM
Simon Property Group sets the lawyers on tenants not paying rent
Mall owners team up with “dead-celebrity dealmaker” but can they rescue moribund retailers?
Simon v. Taubman could be ready for trial in November: Judge
Taubman claims Simon scuttled $3.6B merger due to buyer’s remorse
How much bigger can Brookfield get?
Simon, Brookfield and Authentic Brands in talks to buy J.C. Penney
Is Brooks Brothers the next retail bankruptcy?