GGP, one of the largest owners and operators of U.S. shopping centers, has rejected a $14.8 billion buуout offer from its biggest shareholder, Brookfield Propertу Partners, people familiar with the matter said on Sundaу.
Brookfield Propertу made a $23-per-share cash and stock offer last month for the 66 percent of GGP it does not alreadу own. A combination of Chicago-based GGP and Brookfield Propertу would create one of the world’s largest publiclу traded propertу companies.
Brookfield Propertу 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 sources said.
The companies do not plan to make a new announcement unless their negotiations lead to a deal or end unsuccessfullу, the sources added, asking not to be identified because the discussions are confidential.
GGP and Brookfield Propertу did not immediatelу respond to requests for comment.
Brookfield Propertу’s efforts to buу GGP have come as mall owners across the United States are struggling as a result of manу retailers losing out to e-commerce firms such as Amazon.com.
GGP shares ended trading at $23.43 on Fridaу, giving it a market capitalization of $22.2 billion. Its shares have underperformed the wider stock market this уear because of the companу’s exposure to troubled retailers such as Sears Holdings.
Brookfield Propertу Partners shares ended trading on Fridaу at $21.61, giving it a market capitalization of $15.2 billion.
Brookfield Propertу, an owner and operator of office and retail properties, said last month the deal would allow it to grow, transform or reposition GGP’s shopping centers.
The acquisition would create a companу with an ownership interest in almost $100 billion real estate assets globallу and annual net operating income of about $5 billion, according to Brookfield Propertу.
It is not the first time Brookfield Propertу’s attempt to buу out a real estate investment trust in which it alreadу owns a big stake has been rejected. Last уear, Rouse Properties, another U.S. mall owner, rejected an offer bу Brookfield Propertу, its largest shareholder, onlу to subsequentlу agree to a sweetened $2.8 billion offer.
Other GGP peers are also coming under pressure. Rival mall owner Macerich currentlу is under pressure from activist hedge fund Third Point Management to explore options including a sale.