Brookfield Asset Management reportedly in talks to buy General Growth Properties

Brookfield Asset Management Inc. is in talks with General Growth Properties Inc. to take a 30% stake in the shopping mall owner as it comes out of bankruptcy, said a person familiar with the negotiations.

The plan by Toronto-based Brookfield would give General Growth a higher valuation than a $10-billion takeover bid by Simon Property Group Inc., said the person, who declined to be identified because the talks aren’t public.

Simon, the largest U.S. shopping mall owner, has offered to buy General Growth in a deal that would give equity investors about $9 a share and repay unsecured creditors in full. Chicago-based General Growth said the bid, made public on Feb. 16, was too low and the company would invite other potential buyers to make offers.

Brookfield owns almost $1 billion in General Growth debt, two people with knowledge of the company’s holdings said.

General Growth might raise $1 billion to $2 billion from public markets -- or more, depending on investor demand -- to fund its exit from bankruptcy protection, according to one of those people, who asked not to be named because the talks are private.

Denis Couture, a spokesman for Brookfield, declined to comment. David Keating, a spokesman for General Growth, didn’t immediately respond to a request for comment.

General Growth’s shares have rallied past Simon’s buyout offer, suggesting that investors expect a higher bid.

The stock rose 21 cents, or 1.6%, to $12.97 on Tuesday.