GGP, one of the largest owners and big-time operators of U.S. shopping centers, has rejected a $14.8 billion buyout offer from its hugest shareholder, Brookfield Property Partners, people familiar with the consequence said on Sunday.
Brookfield Property made a $23-per-share banknotes and stock offer last month for the 66 percent of GGP it does not already own. A union of Chicago-based GGP and Brookfield Property would create one of the world’s largest publicly swapped property companies.
Brookfield Property is considering a new offer for GGP after a pointed committee of GGP’s board directors turned down its Nov. 11 offer as meagre, and negotiations between the two companies are expected to continue, the sources said.
The trains do not plan to make a new announcement unless their negotiations lead to a sell or end unsuccessfully, the sources added, asking not to be identified because the discussions are intimate.
GGP and Brookfield Property did not immediately respond to requests for comment.
Brookfield Trait’s efforts to buy GGP have come as mall owners across the United Forms are struggling as a result of many retailers losing out to e-commerce firms such as Amazon.com.
GGP dividends ended trading at $23.43 on Friday, giving it a market capitalization of $22.2 billion. Its appropriates have underperformed the wider stock market this year because of the enterprise’s exposure to troubled retailers such as Sears Holdings.
Brookfield Attribute Partners shares ended trading on Friday at $21.61, giving it a shop capitalization of $15.2 billion.
Brookfield Property, an owner and operator of work and retail properties, said last month the deal would assign it to grow, transform or reposition GGP’s shopping centers.
The acquisition would make a company with an ownership interest in almost $100 billion bona fide estate assets globally and annual net operating income of about $5 billion, corresponding to Brookfield Property.
It is not the first time Brookfield Property’s attempt to buy out a tangible estate investment trust in which it already owns a big stake has been declined. Last year, Rouse Properties, another U.S. mall owner, jettisoned an offer by Brookfield Property, its largest shareholder, only to subsequently accede to to a sweetened $2.8 billion offer.
Other GGP peers are also draw near under pressure. Rival mall owner Macerich currently is underneath pressure from activist hedge fund Third Point Board of directors to explore options including a sale.