Should Simon Own General Growth?

Simon Property Group is increasing its bid for General Growth Properties. The largest mall and outlet center owner in the country is committing $1.5 billion toward GGP’s exit from bankruptcy.

This is getting interesting. Simon has more investors on board, but potential GGP acquirer Fairholme Capital Management is against such a plan.

GGP certainly has a lot of attractive properties. But is this battle worth it for a company like Simon?

ALSO: Vitamin Shoppe Gets Energy Boost from High Health Care Costs

2 Responses to “Should Simon Own General Growth?”

  1. 1 Retail Advocate April 23, 2010 at 10:43 am

    NO! Simon will only continue to abuse laws, such as the Sherman Act, which they violate by tying deals together: i.e. “Retailer, you must open a location in a C mall in Great Falls, Montana, if you want to get a location in an A mall in Southern California.” The Federal Trade Commission needs to stop these unfair business practices, now.

  2. 2 Ken Simons April 23, 2010 at 2:26 pm

    This is kind of a double edge sword. Simon, probably does not want to see their major competition get wholesaled and change competitive strategy that would affect their existing bottom line. This would allow them to have some control over its major competition. Thus could give them immense influence over the balance of competition.

    GGP now gets some serious competitive options now that Simon has resubmitted. It will be interesting. I am guessing the price is going up. The longer they can wait, with retail sales stabilizing and in some cases increasing, makes these assets more valuable in the global mindset.

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