Two defendants in Patte's Sports Bar gambling case sign plea deals

Juvie unit  in county up  and running

<b>First Posted:</b> 2/17/2010<br><br>ALEX VEIGA AP Real Estate Writer
LOS ANGELES &amp;mdash; Simon Property Group Inc., the nation&amp;rsquo;s largest shopping mall owner, made a $10 billion hostile bid Tuesday to acquire ailing rival General Growth Properties.


The acquisition would allow General Growth, the No. 2 owner of shopping centers, to emerge from Chapter 11 bankruptcy protection. General Growth filed for bankruptcy last year after buckling under the weight of billions in debt it racked up during a massive expansion effort fueled by cheap credit.
The move is Simon&amp;rsquo;s second attempt at a major acquisition in three months. In December, Simon offered $700 million in cash and stock to buy more than 60 outlet shopping centers from another competitor, Prime Outlets Acquisition Co. The deal is pending.
Simon is using its comfortable cash cushion and credit lines to take advantage of falling commercial property values, which are off 40 percent from their peak in 2007. And General Growth has some prized centers, including the Glendale Galleria in Southern California and the South Street Seaport in Manhattan.
Simon has been able to weather the economic downturn despite rising retail vacancy rates in the double-digits in some cities. The Indianapolis-based firm popularized the so-called lifestyle center mall design that turned malls into neighborhood-like communities. Simon owns over 380 properties, including the Houston Galleria and the Fashion Valley Mall in San Diego.
Many national retail firms have stores in regional malls like those Simon and General Growth own. If Simon or another large mall operator were to acquire General Growth&amp;rsquo;s centers, it could negotiate for higher rental rates with retailers.
Simon disclosed its offer after General Growth&amp;rsquo;s board failed to respond to a formal offer it made last week. In a letter to General Growth&amp;rsquo;s board dated Feb. 8, Simon spelled out its offer and argued shareholders stand to gain more from a takeover than if General Growth emerged from bankruptcy as a standalone company, or accepted a rival bid.
A spokesman for Chicago-based General Growth had no comment.
Though the official committee for General Growth&amp;rsquo;s unsecured creditors has backed the deal, stockholders appeared to be looking for a sweeter offer from Simon or another competitor. Shares in General Growth shot up nearly 28 percent, or $2.62, to $12.02.

Mall giant offers buyout