GGP (NYSE: GGP) one of the largest owners and operators of U.S. shopping centers, has rejected a $14.8-billion buyout offer from its biggest shareholder, Brookfield Property Partners (NASDAQ: BPY), according to reports out Sunday.
Brookfield Property made a $23-per-share cash and stock offer last month for the 66% of GGP it does not already own. A combination of Chicago-based GGP and Brookfield Property would create one of the world's largest publicly traded property companies.
Brookfield Property is considering a new offer for GGP after a special committee of GGP's board directors turned down its Nov. 11 offer as inadequate, and negotiations between the two companies are expected to continue.
The companies do not plan to make a new announcement unless their negotiations lead to a deal or end unsuccessfully, the sources added, asking not to be identified because the discussions are confidential.
Brookfield Property's efforts to buy GGP have come as mall owners across the United States are struggling as a result of many retailers losing out to e-commerce firms such as Amazon.com.
The acquisition would create a company with an ownership interest in almost $100 billion real estate assets globally and annual net operating income of about $5 billion, according to Brookfield Property.
Last year, Rouse Properties, another U.S. mall owner, rejected an offer by Brookfield Property, its largest shareholder, only to subsequently agree to a sweetened $2.8 billion offer.
GGP shares gained 19 cents to $23.62 early Monday, while Brookfield shares dipped seven cents to $21.54
