(Ian Ritter is national online editor for GlobeSt.com/RETAIL.)

CHEVY CHASE, MD-The Mills Corp. has rejected the terms of Gazit-Globe's $25.50-per-share offer to recapitalize the REIT, at least under the current conditions set forth by the proposal. A statement by Mills encourages the Israel-based firm to sign a standstill agreement so that its board can compare the offer to those submitted by other suitors.

One of the concerns outlined by Mills' board is that Gazit-Globe chairman Chaim Katzman would take control of the company through the recapitalization, leaving little power to shareholders. It also says that other suitors for the company have already agreed to standstill and confidentiality agreements.

Gazit upped its offer by $1 per share last week. The firm had made its original, $1.2-billion recap proposal in October, when it purchased 9% of Mills' stock.