Brookfield Property Partners LP pursuing mall owner GGP Inc with improved offer

A deal would enable the firm to have enough financial and market clout to take on e-commerce giants such as Amazon.com

As per sources, GGP Inc, one of the largest owners and operators of U.S. shopping centers, has rejected a $14.8 billion buyout bid from Brookfield Property Partners LP, its biggest shareholder.

Last month, Brookfield Property had made a $23 per share cash and stock offer for acquiring a 66% stake at GGP.

If the deal was accepted it would have created one of the world’s largest publicly traded property companies.

According to sources, following the turning down of its offer by a special committee of GGP’s board directors on November 11 wherein it termed Brookfield Property’s offer as inadequate, the firm is now evaluating a new offer with negotiations expected to continue.

They went on to add, both companies are unlikely to make new announcements unless their negotiations conclude in a deal or end unsuccessfully.

Sources preferred the cover of anonymity since the discussions are confidential.

These efforts at consolidation comes at a time when many retailers across the U.S. are losing out to e-commerce firms such as Amazon.com Inc/

If the deal goes through, it would create a company with an ownership interest in almost $100 billion real estate assets globally and whose annual net operating income is slated to be at around $5 billion, according to Brookfield Property.

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