Associated Press | Mall owner Simon Property Group Inc. sweetened its offer to buy out its struggling rival General Growth Properties Inc. on Wednesday, trying to best a group of investors bidding for the company.

Two months after its hostile bid valued at $10 billion was rejected, Simon said it will match a dueling offer for the real estate investment company and invest $2.5 billion into its reorganization.

Simon, the nation’s largest mall owner, said its offer may also include
an additional $1 billion investment from prominent financier John
Paulson’s Paulson & Co.

Simon, which is based in Indianapolis, said Wednesday’s offer amounts to
$10 a share. Its earlier offer of $9 per share was rejected.

General Growth operates more than 200 shopping malls in 43 states and is
the nation’s second-largest shopping mall operator.

It sought shelter from creditors a year ago, resulting in the largest
real estate bankruptcy in U.S. history. The company, based in Chicago,
remains under Chapter 11 protection.

General Growth is considering a competing offer from Brookfield Asset
Management and a group of other investors. That deal would inject some
$6.5 billion in cash in exchange for shares of the company.

Simon Properties added that under its proposal the company would not
receive any warrants, making the deal less dilutive than the Brookfield
bid. According to Simon, the lack of warrants equates to a benefit of at
least $895 million, or $2.75 per share.

General Growth shares fell 3 cents to $16.12 in morning trading
Wednesday while Simon shares rose 34 cents to $88.52.