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Brookfield Property offers to buy rest of mall owner GGP for $14.8 billion

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Brookfield Property offers to buy rest of mall owner GGP for $14.8 billion

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(Reuters) – Brookfield Property Partners LP <BPY.N>, one of the world’s largest commercial real estate companies, on Monday made an unsolicited bid to buy the 66 percent stake in mall owner GGP Inc <GGP.N> it does not already own for $14.8 billion. The $23 cash-and-stock offer for each GGP share represents a premium of 3.6 percent to GGP’s Friday close. But is at a 21 premium to GGP’s close on Nov. 6, a day before Bloomberg reported that Brookfield was in preliminary talks with GGP. GGP’s shares were trading above the offer price at $23.85, suggesting some investors were expecting a higher bid. Brookfield’s shares were down 5 percent at $22.44 in morning trade. With about 127 properties, mostly in the United States, GGP’s tenants include carmaker Tesla <TSLA.O>, jeweler Tiffany & Co <TIF.N> and retailer Macy’s Inc <M.N>. Brookfield Property, spun off from Toronto-based Brookfield Asset Management Inc <BAMa.TO>, holds about 34 percent in GGP through several entities. GGP said its board had formed a special committee to review and consider the proposal. A potential deal is expected to create a company with an ownership interest in almost $100 billion real estate assets globally and annual net operating income of about $5 billion, Brookfield said. GGP shareholders will own about 30 percent of the combined company. Citigroup Global Markets Inc is serving as financial adviser and Sullivan & Cromwell LLP is serving as legal counsel to GGP.

(Reporting by Sanjana Shivdas; Editing by Sriraj Kalluvila)
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