So, Simon is now apparently at a bid of $18.25 for all of GGP. We are right back where we started from, just at a higher price. Did anyone seriously think anything else was going to happen? While I obviously don't know the story (I am not a reporter, just a blogger), I do know this: If I were representing a buyer, I would have suggested a partial buy in to GGP as a potential means of getting the assets I want. After all, who wants your competition breathing down your neck?But if that does not work -- and it won't -- go back to the jugular.
And gee, guess what? Simon is willing to divest up to 15 million sf of malls to make the deal happen and get over any anti-trust concerns. That means they can buy the company, sell off the assets they probably did not want anyway and keep the trophies. Sounds like a good plan to me.
Metz and Co. of course want to run their own show, so they are going to rely on their recap plan to win the day. Obviously none of us know how this all plays out but do not be shocked if GGP does recap the company, but after selling a bunch of malls to Simon. Win-win? Maybe.