General Growth files exit plan, rival bids may follow

NEW YORK: General Growth Properties Inc, the No 2 US mall owner, filed an eagerly awaited plan to exit bankruptcy on Wednesday (March 31), setting the stage for suitors such as Simon Property Group Inc to come in with rival bids.

The plan calls for Brookfield Asset Management, Fairholme Capital Management and William Ackman's Pershing Square Capital invest US$6.55 billion (RM21.4 billion) to bankroll General Growth's exit.

In return the group will get majority interest in a reorganised entity and warrants to buy another 120 million shares.

Toronto-based Brookfield would get a 26% stake in the reorganised company and three of nine board seats, and it could would play a larger role in General Growth's future.

Brookfield, an investor in property, power and other infrastructure assets with access to more than US$4 billion in liquidity, has offered to provide asset management services for free, assist in corporate finance matters and install one of its own executives to run General Growth Opportunities, a new company that would house non-core assets. -- Reuters
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