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As the clock winds down on its offer to buy rival Taubman Centers Inc., Simon Property Group Inc. is facing the loss of its most valuable asset.
Developer Sheldon Gordon is holding an option on the Forum Shops at Caesars Palace in Las Vegas. The option, part of an agreement Gordon has with Simon, could allow Taubman to become a minority owner in the luxurious mall. This would put Simon - which currently owns 58% of the mall - on the outs. (Gordon designed the mall and owns the other 42% of the property.)
Indianapolis-based Simon now has 30 days to decide whether to buy Gordon's interest in the mall or to sell its majority stake to Gordon. The mall is capable of generating a high $1,000 in sales per square foot.
All this comes on the...