UPDATE: Mills Considers Simon Bid

CHEVY CHASE, MD-The Mills Corp.’s board of directors is considering a proposal by Simon Property Group and Farallon Capital Management to acquire the company for $24 per share. The proposal tops the $21 per share, or $7.5 billion that Brookfield Asset Management had offered last month.

Mills’ board is still deciding on the Brookfield proposal but is considering the Simon-Farallon deal because it could lead to what a company document calls a “Superior Competing Transaction.” Mills’ management and advisors will now start discussions with the parties.

As part of their proposal Simon and Farallon are offering $650 million in equity and plan to replace a $1.55-billion loan with financing that will include a working capital facility. Merrill Lynch is the financial advisor to the two parties. Simon’s legal representative is Fried, Frank, Harris, Shriver & Jacobson, while Paul, Weiss, Rifkind, Wharton & Garrison LLP and Richards Kibbe & Orbe LLP are legal counsel to Farallon.