GGP: Recap on recent news
I’ve been out of vacation last week, so I haven’t updated the blog in a while. There has been some interesting updates related to GGP.
Simon has been discussing with GGP its $15/share offer. The offer is similar to BAM’s offer but doesn’t have any of the warrants that BAM’s deal includes. The Simon offer is similar to BAM but has one major difference, any investment by Simon in GGP would create anti-trust issues. I’ve mentioned in the past that Simon could work around these anti-trust issues. Although it seems that Simon wants some say in GGP out of the investment, which will make it tough for anti-trust issues to be resolved. Simon has brought in 4 other investors into its offer for GGP, that is an attempt by Simon to allay the anti-trust issues. I think Simon still needs to offer something more to put aside the trust issues.
GGP also pushed back its court meeting from April 29th to May 4th. I think GGP is expecting better offers between now and May 4th. It wouldn’t be a shock is BAM/Pershing/Fairholme improved its offer, Simon got serious about buying GGP, or someone else comes to the game. In all, I think the delay in the court meeting is great thing for shareholders. I expect an interesting weekend.