reuters:ggp's bod to meet sunday to decide on bids
General Growth board to vote on bids this weekend-source
* GGP board meeting more likely Sunday
* Board weighs quantitative, qualitative factors
By Paritosh Bansal
NEW YORK, May 1 (Reuters) - General Growth Properties Inc's (GGP.N) board is expected to vote this weekend on choosing between two rival recapitalization offers, a source familiar with the situation said on Saturday.
The board of General Growth is more likely to meet on Sunday for a vote on the capital proposals led by Brookfield Asset Management (BAMa.TO) and Simon Property Group Inc (SPG.N), the source said.
General Growth, the second-largest U.S. mall owner, has submitted a plan in court to exit bankruptcy backed by Brookfield. But Simon, its larger rival, has come up with a competing offer.
The Brookfield-led plan, which also includes investments from Pershing Square Capital Management and Fairholme Capital Management, commits $6.5 billion to help General Growth exit Chapter 11, but the investors are also asking for warrants worth several hundred million dollars as part of a deal.
Simon has offered to make that investment on similar terms but without any warrants.
General Growth's board is comparing quantitative factors as well as more subjective factors in deciding which way to go, the source said, adding that it was getting closer to deciding.
Both Brookfield and Simon have made arguments on subjective, qualitative factors, the source said.
The qualitative factors include issues such as what it would mean for General Growth to have its rival holding a stake in it.
Simon has tried to allay that concern by stressing that it would be a passive shareholder and has taken measures that include reducing its voting stake and proposing independent directors for General Growth's board should its bid succeed.
General Growth has scheduled a bankruptcy court hearing on May 5 to get the proposal it chooses approved as a so-called "stalking horse" bid, which sets the floor for any other offers for the company.
A General Growth spokesman could not be reached immediately on Saturday. The source is anonymous because these discussions are not public. (Reporting by Paritosh Bansal; Editing by Xavier Briand) (For more M&A news and our DealZone blog, go to www.reuters.com/deals)
