General Growth Properties gets $3.9 billion investment proposal

General Growth Properties is well known as being the owner of some of the largest and most famous malls in North Texas. The company is however, trying to get out of bankruptcy filing and manage its debt. The company has also successfully and vehemently fended off a competing bid by its rival Simon Property Goup Inc. The company has got help from Brookfield Asset Management, which has taken up 30% in stake in General Growth, even as it gets help in the form of selective assets sale and debt help. Brookfield has already pledge funds to the extent of $2.63 billion, which is substantial and quite handy for General Growth that is desperate to come out of bankruptcy.

There is news that Bruce Berkowitz’s Fairholme Capital Management LLC and William Ackman’s Pershing Square Capital Management LP will pitch in with extra funds to bail out General Growth. These efforts are all scoffed at by Simon Property Inc. which views such deals as being suboptimal and not in the best interests of shareholders. This is something that irks General Growth as it makes a last ditch but honest and sincere effort to come out of bankruptcy. After all, you do not try to out someone down who is trying to come up, do you?

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