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The Mills Corp, one of the first mega mall developers in the US, has decided in favor of $1.6 billion acquisition bid placed by Simon Property Group Inc. and Farallon Capital Management LLC. Board of directors and shareholders of Mills consider the price of Simon-Farallon group to be more competitive than the one offered by Toronto based Brookfield Asset Management Inc. In order to acquire the Mills firm, Simon-Farallon group has quoted a price of $24 per share whereas Brookfield’s price was $21.

Mills Corp., which has around 38 shopping malls in the country, is on the verge of bankruptcy. Apart from mismanagement of funds, the company has borrowed huge amount of money. The Mills board has decided to cancel the acquisition agreement that it has signed with Brookfield on January 17, 2006. It gave Brookfield three days time so that they can amend their price and quote a better offer. Otherwise the agreement will be terminated.

Apart from the higher price, taking into consideration the past record and experience, Mills believes that the transaction deal with Simon-Farallon group would be an easy process. Indianapolis based Simon is the largest shopping mall company in the U.S and has more than 286 outlets in the country. Expressing delight on the news, Simon spokesperson, Stephanie Pillersdorf said that the company was pleased with the price and is looking forward for a great relation. Simon want to close the transaction within the least possible time frame. Even the market experts believe that Simon is a better firm to acquire Mills group than Brookfield.

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