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Ailing Mall Owner Could Accept $10 Billion Bid

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A rival real estate group is offering $10 billion to by Chicago-based General Growth Properties.

General Growth filed the largest bankruptcy reorganization in U.S. history last year. And now the Indianapolis-based Simon Property Group is offering to buy the struggling mall owner.

Morningstar analyst Todd Lukasik says the offer is a good one. But he says it’s hard to say how accepting General Growth would be of getting acquired by one of their major competitors.

LUKASIK: But certainly in terms of potential operations of the assets if they were acquired by Simon...Simon does have the infrastructure place for marketing, relationships with retailers, and lease negotiations and things like that.

Simon’s $10 billion offer includes a full repayment of all General Growth’s unsecured creditors. General Growth owns more than 200 malls including Chicago’s Water Tower Place. The company did not return requests for comment.

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