General Growth has a busy week ahead.
The No. 2 U.S. mall owner is weighing a $5.8 billion takeover bid from its larger rival, Simon Property.
It postponed a hearing in bankruptcy court to Friday to have a ‘stalking horse’ bid approved, which would set the floor for future offers for the company.
General Growth has so far favored a bid led by Brookfield Asset Management to help it exit bankruptcy, choosing it over another offer by Simon to come in as a passive investor and buy a minority stake in the company.
But it still has to figure out whether Simon’s offer to buy all of the company makes sense. The latest postponement of the hearing — the third time it has done so – could be a sign it is doing just that.
When Simon put in a bid, it wanted it to be a slam dunk. It offered $18.25 per share for all of General Growth on Sunday, more than double its initial takeover offer of $9 per share and a 21.7 percent premium to the Brookfield-led bid at $15 per share.