>>>>>The assets are far superior to the current $15 price tag. <<<<<<<<<<<<<<
Especially to someone like SPG.
As you said, David S couldn't find a bargain for the quality malls he seeks in the USA so he went abroad to the UK, and learned there were no bargains to be had there and ended up with nothing to show for it. I doubt he has any interest in mainland Europe; Austrailia is owned by Westfield; and there is slim pickings in this product segment in Central and South America; which brings him back to the good ole USA for his future growth.
I would expect that soon after David S finishes licking his wounds from his failed attempt to buy CSC, he will pick up the phone and place a call to Messrs Ackman and Berkowitz.
Who knows where things go but this could get intersting.
Yes, Simon has done their due diligence on GGP (something they could NOT even get to do with CSC!), and as I've said previously, the hedge fund stake combined amounts to enough of a percentage of stock of GGP to pull off a deal if the price is right.
Sure, there are complications, as some malls would need to be sold due to antitrust issues, yet you have Blackstone involved in GGP and they have parted out portions of REIT companies before, and would gladly due so again.
Simon has the currency to buy GGP in the form of its stock. And GGP would be a very nice sized acquisition for Simon to digest for years, pulling out cost synergies, and capitalizing on the near term refinancing benefits and extenion of short term lease rates to permanent lease rates (much higher rates) at GGP. Simon should move rather quickly if they are to bid for GGP, as, I would think if they wait the sizeable benefits of the refi and lease rate improvements will already have resulted in a higher GGP stock price in the next few months or so, which would just increase the cost to Simon if they are to bid for GGP.
SPG knows the GGP malls as well as they know their own malls.
All that has to happen is for SPG to make a deal with Ackman and Berkowitz. I think it is that simple. If Ack and Berkie like the price they will bring Blackstone, BAM, Texas and any other institutions or Hedgies they brought along.
The question is what is Simon willing to pay. These sellers will want a market price; SPG has been unwilling to pay such. Perhaps David is wearing down or all that cash and credit lines are burning a hole in his pocket where he will make a market offer.