Report: General Growth Properties rejects Simon Property's $10B bid

Chicago General Growth Properties has rejected a $10 billion offer to sell itself to rival Simon Property Group, according to the Washington Business Journal.

However, the report indicated that the nation's second-largest mall owner did not reject outright Simon's overtures and indicated it would consider being acquired as part of its efforts to emerge from Chapter 11 bankruptcy protection.

Indianapolis-based Simon is the nation's largest mall owner.

General Growth CEO Adam Metz, in a letter to rival Simon CEO David Simon, said the company remains committed to restructuring its debt, but will not allow Simon to derail that process.

Metz said Simon's offer "is not sufficient to preempt the process we are undertaking to explore all avenues to emerge from Chapter 11 and maximize value for all the company's stakeholders."

Chicago-based General Growth made the letter public in a press release issued Tuesday evening in response to Simon's decision to publicize its acquisition offer. General Growth filed for bankruptcy protection in April 2009.

Simon said Tuesday it has offered to acquire General Growth for $10 billion, including $9 billion in cash. The offer would give General Growth creditors $7 billion in consideration.