Simon Property Group, the owner of Lenox Square Mall and Phipps Plaza, announced a hostile bid for General Growth Properties on Tuesday.
General Growth owns Perimeter Mall and North Point Mall in metro Atlanta, among other properties.
Indianapolis-based Simon is the nation's largest shopping mall owner, while Chicago-based General Growth is the nation's second-largest. If successful, the bid would further reinforce Simon's standing as the landlord of the majority of Atlanta's largest malls.
Simon's $10 billion bid for General Growth came less than a year after General Growth filed for bankruptcy. General Growth had buckled under the weight of billions in debt racked up during a massive expansion effort fueled by cheap credit.
The impact on shoppers of a Simon takeover of General Growth malls could be limited, aside from marketing, said Greg Maloney, president and CEO of the retail division of Jones Lang LaSalle.
Most of Atlanta's top malls already are owned by either Simon or General Growth, he said.
"I think any one company owning a majority of anything is not healthy for the consumer and the retailer," he said. "You want competition."
In Georgia, Simon also owns the Mall of Georgia, the Mall of Georgia Crossing, Discover Mills, Gwinnett Place, Northlake Mall, Town Center at Cobb and the North Georgia Premium Outlets.
General Growth also owns Cumberland Mall and Southlake Mall in metro Atlanta, plus malls and shopping centers in Augusta, Columbus, Macon and Savannah.
General Growth said it is exploring all alternatives for emerging from bankruptcy, including the Simon offer.
Matt Winn, managing director of retail consulting for Cushman & Wakefield, said one way the operators are different: Simon is focused on refining the "fortress mall model" while General Growth likes malls with adjacent land for mixed-use developments.
The offer for General Growth would fully repay $7 billion to General Growth's unsecured creditors and $3 billion to shareholders. Stockholders would get $6 a share in cash and $3 a share in other assets. The offer, however, might be amended so shareholders could receive Simon stock instead of cash.
Although the official committee for General Growth's unsecured creditors has backed the deal, stockholders appeared to be looking for a sweeter offer.
Alexander Goldfarb, an analyst with Sandler O'Neill & Partners, said he expects other offers to drive the bidding higher.
Simon made the public offer after General Growth executives failed to make a "substantive response" to Simon's overtures.
The Associated Press contributed to this story.
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