Simon Properties Still Wants a Piece of GGP

General Growth Properties is behind SPG as the nation's second largest mall operator, but has been working hard to emerge from the bankruptcy that it was forced to claim last year as the recession and struggling real estate market proved too much for the company to bear. It was the largest real estate bankruptcy in American history.

In an attempt to help overcome the antitrust hurdles of such a deal, Simon Property stated that it would agree to having just a 20% voting interest in General Growth Properties.

On top of the $10 offer, Simon Property's offer also includes a $5 backstop plan on the eventual sale of portions of GGP assets into a separate company, placing the actual offer at $15 per share.

SPG is not the only company interested in financing General Growth out of bankruptcy. There is already a $6.5 billion offer from Brookfield Asset Management Inc. (BPO), Fairholme Capital Management and Pershing Square Capital Management Inc.

Both offers place a $15 value on GGP shares, but the Brookfield offer includes warrants for investors to acquire stock in a newly organized General Growth. The lack of warrants in the Simon offer translates into an extra $895 million, or $2.95 per share according to Simon Property.

Simon stated that it would allow Fairholme and Pershing to remain co-investors, but only if they were willing to forgo the warrants that they agreed to under the Brookfield plan.

GGP traded up 1.4% yesterday to $16.38 while SPG was traded down 0.26% to $87.95.