GGP: BAM and Westfield updates

The GGP world is moving at a pace faster than the internet world speed. Since our update over the weekend, the following has happened in 3 days:

– BAM and GGP have come up with a counter-offer to the Simon offer. The proposal values GGP at $15 and proposes splitting GGP into two: one holding the top class assets (GGP) and another holding the remaining (GGO – General Growth Opportunities. In return BAM would get 30% of GGP. I think this is a good offer but it really just creates a floor for GGP share value. There will be more bidding in the coming days.

– Simon has signed a Non Disclosure Agreement with GGP. Simon had initially protested against the terms of the NDA. After the BAM/GGP plan was made public, Simon quickly signed the NDA. We have said it would be foolish to rule out Simon in this bidding war. Simon signing the NDA is a clear sign that this is far from over. I accept another offer from Simon in the coming days.

– Westfield has signed a NDA with GGP and is considering a bid. Another bidder will make it even more interesting for current share holders. This is a major positive for shareholders.

GGP owns some of the most prized retail shopping mall assets. An opportunity to purchase these assets at valuations based on the Simon and BAM proposals are a once in a lifetime chance. It is extremely hard to see Simon or BAM not increasing their offer as the bidding war progresses. I think the recent offer from BAM is not the final offer. I except an increased offer in the coming days.