The nation's largest real-estate investment trust, Simon Property Group (SPG), said Friday it isn't in active negotiations with General Growth Properties Inc., which is trying to remerge from bankruptcy this year.

When asked by RBC Capital Markets Analyst Rich Moore during an earnings call if the company was in active talks with General Growth, which is in the midst of Chapter 11 proceedings, Chief Executive David Simon replied "no."

However, the company is trying to position itself to take over General Growth, which owns 200 U.S. malls, according to people familiar with the matter. And Brookfield Asset Management Inc. (BAM), a Canadian real-estate investor, is studying providing capital for General Growth in exchange for an ownership stake.

General Growth is attempting to exit bankruptcy this year and currently remains in control of its destiny as long as its exclusivity period lasts. During that time, only the debtor can propose a plan to the judge for bringing the company out of bankruptcy. Thus, acquirers can express their interest only to General Growth's board in the interim.

-By A.D. Pruitt, Dow Jones Newswires; 212-416-2197; angela.pruitt@dowjones.com

 (Kris Hudson of The Wall Street Journal contributed to this report)
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