GGP: Going forward with BAM

GGP announced yesterday that their board has picked the BAM offer over Simon’s offer. I think this is great news for shareholders, this was somewhat expected. The BAM offer is likely to have some changes to the terms, although overall the majority of the terms will stay similar to the initial offer. The big change is that the warrants will vest over time. This means that Pershing/Fairholme are unlikely to unload their shares in the short-term. This is great as it means they believe there is strong long-term value in the shares.

I expect the judge to go along w/ GGP. I’m expecting a strong finish for GGP this year, once they come out of chapter 11.

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