Mills OKs Simon/Farallon Offer

The Mills Corp. has decided to go with an offer from Simon Property Group, an Indianapolis-based retail real estate investment trust, and Farallon Capital Management to acquire the Chevy Chase, Md.-based retail REIT for a total price of about $7.9 billion.The transaction values The Mills common stock at $25.25 per share, which is payable in cash, the REIT said. The initial offer from Brookfield Asset Management was for a total of $7.5 billion, including a cash payment of $21 per common share. That agreement has been voided. SPG has provided The Mills with debt funding to replace its senior term loan and revolving line of credit from Brookfield. David Simon, chief executive officer of Simon Property Group, sees the Mills assets as "an excellent strategic fit with our existing retail assets." The acquiring companies said they expect to improve the performance of the properties and unlock their "true potential." Farallon is a San Francisco-based investment management company. The companies can be found online at http://www.simon.com, http://www.faralloncapital.com, and http://www.themills.com.