General Growth Properties Inc., the bankrupt developer of the stalled Elk Grove Promenade mall, received a takeover bid today.
The $10 billion bid was made by Simon Property Group, a rival mall developer from Indianapolis.
If accepted, the bid would enable General Growth to emerge from Chapter 11 bankruptcy. Simon would pay $7 billion to creditors and $3 billion to shareholders.
There was no immediate word on what the bid might mean for the Promenade site. Because of weak market conditions, real estate analysts in the Sacramento area believe it will be several years before the mall gets built, regardless of what happens to General Growth.
Construction on the Promenade, an open-air mega-mall off Highway 99 in Elk Grove, was halted in late 2008. General Growth, based in Chicago, filed for Chapter 11 a few months later.
Simon made a hostile or unsolicited takeover bid, saying it made a friendly overture to General Growth more than a week ago but had yet to receive a "substantive response." The Indianapolis developer said its offer has the support of the official bankruptcy committee representing General Growth's unsecured creditors.
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