General Growth is looking for all possible ways to come out of the bankruptcy phase it has also made the way to do that via sale and raising equity from the institutional investors so that it attain a status of free company.
While the General Growth group is thinking to get rid off its bankruptcy Simon has offered the group to pay off its unsecured creditors and giving its equity holders a $6 share, with an additional $3 out of the master-planned communities owned by General Growth. However making the offer public Simon has prompted others to get into the league of taking over to the group just to play big.
Simon has played an early game to support the unsecured creditors issue but it could turn the other way round as well if any other deal comes into the play then Simon can face opposition from the board.
Simon could face the threat from the fund manager William Ackman of Pershing Square Capital, according to whom General Growth’s stock is worth $24 to $43 a share. He is also a major person in the board holding 25 percent of the General Growth shares.
Other major investors from whom the Simon group can face opposition is, Brookfield Asset Management, who has been buying up General Growth unsecured debt.
Moreover Simon has played the first shot well to pay the unsecured creditors to own the wonderful opportunity. Simons has offered General Growth bondholders its exchangeable senior notes and the bonds from the acquisition of Rouse Cos which shall receive full recovery plus accrued interest and dividends to the bondholders which could lead to great results in acquiring General Growth.
Simon is planning to finance the big deal with all its requisites, cash on hand, existing credit facilities and the institutional investors for joint ventures on some of the properties.