BTIG calls for rejection of bid for GGP

|By:, SA News Editor

GGP bull James Sullivan calls the new bid from Brookfield Property (NYSE:BPY) "wholly inadequate." The "effective" price of $21.90 is up only modestly from the previous bid of $20.86, and far below Sullivan's NAV per share estimate of $32.83 (based on a 4.5% cap rate).

He suggests the deal could violate GGP's Related Party Transaction Policy as the company has often said the stock's worth far more than the current price.

JPMorgan, meanwhile, downgrades Simon Property (NYSE:SPG) and Macerich (NYSE:MAC) to Neutral, noting the GGP price is bad news for REITs.

GGP is up 2.4% premarket to $21.70.

Source: Bloomberg's Joshua Fineman

Previously: Mall players on watch after disappointing GGP deal (March 27)

Previously: Brookfield Property Parners seals deal for GGP (March 26)