Simon Property Group is likely to face competition in its bid to take over rival US shopping centre giant General Growth Properties.
On Tuesday, Simon made a $10bn offer – equivalent to $9 a share – for GGP, which collapsed into bankruptcy last year with $27bn of debt.
Simon pointed out that the offer would be sufficient to pay back GGP’s existing creditors – owed $7bn – in full. But GGP responded by saying that while Simon had a part to play in its restructuring, the offer would not lead to the abandoning of the current bankruptcy process.
This has sparked speculation that other parties might try to trump Simon’s bid.
Toronto-based fund manager Brookfield, which holds $1bn of GGP’s debt, is a possible alternative bidder, analysts suggested on Wednesday.
Simon’s actions also prompted renewed speculation that it may bid for the slimmed-down Capital Shopping Centres division of Liberty International, in which it owns a 6% stake, if the UK REIT’s demerger of its business goes ahead.
