General Growth wins court approval of Brookfield-led bid, trumping Simon

Friday, May 7, 2010 | 1:46 p.m.

General Growth Properties Inc., the bankrupt U.S. mall owner, won court approval of a sale process that makes a group led by Brookfield Asset Management Inc. the lead bidder, ending a three-month contest with Simon Property Group Inc. General Growth fell 11 percent in New York trading.

U.S. Bankruptcy Judge Allan Gropper in Manhattan today approved General Growth’s plan to give Brookfield, Fairholme Capital Management LLC and Pershing Square Capital Management LP warrants to buy stock in the reorganized company in exchange for financing. Testimony at today’s hearing focused on whether the warrants might chill bidding.