GGP Rejects Brookfield's Initial $14.8B Offer, Negotiations Continue

GGP Inc. has declined Brookfield Property Partners' $14.8B buyout offer, according to news reports.

A committee of GGP's board of directors deemed the deal inadequate, rejecting the unsolicited $23/share part-cash, part-equity bid made by the Toronto-based asset manager Brookfield last month, Reuters reports. The company already owns 34% of GGP's stock and the acquisition would have allowed it to acquire the remaining 66%.

Negotiations are expected to continue, but updates will not be announced until a consensus has been reached. Should a deal move forward, it would create one of the largest publicly traded property companies in the world, Reuters reports.

Chicago-based GGP owns 125 shopping centers across the U.S. and is one of the largest mall owners in the country. The REIT has struggled over the past year because of exposure to struggling retailers like Sears. A Brookfield acquisition could help the mall owner and operator grow and improve its shopping center performance, Reuters reports.

Bruce Flatt, the CEO of Brookfield's parent company, Brookfield Asset Management, remains confident the deal will proceed, according to Bloomberg, and said the company is ready for a months-long battle to win its prize.

“These are processes that everyone goes through ... We think we have a fair offer on the table. We have a great board of independent directors and they’re going to consider it. There’ll be lots of stories between now and when the process ends, and I think they’ll see it as a fair offer," Flatt said during an interview on Bloomberg Television Monday.

GGP shares have risen slightly since the announcement in November, sitting at $23.43 as of Friday with a market cap of $22.2B. Brookfield ended the trading day at $21.61 with a market cap of $15.2B.

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