By KRIS HUDSON
Mall giant Simon Property Group Inc. has lined up deep-pocketed investors, including Blackstone Group LP and sovereign wealth funds, to potentially join its bid for insolvent rival General Growth Properties Inc.

Simon currently has enough cash on hand and credit-line capacity to pay the entire $9 billion cash portion of its $10 billion offer price on its own. However, the financial partners it has sounded out could be called upon if it must raise its bid. Additionally, those partners could be asked to help Simon recapitalize the purchase after it is completed, lending it capital to replenish its cash reserves, say people close to the situation.

No deals have been completed and the talks may fall apart, these people say. Simon’s talks with Blackstone were first reported by Bloomberg News.

Simon on Tuesday unveiled its takeover bid for General Growth, which collapsed under a huge debt load last year. Simon would use cash or stock to pay off holders of General Growth’s $7 billion in unsecured debt. General Growth has responded that it will examine multiple options for exiting bankruptcy, including soliciting additional buyout offers and selling new stock to raise needed capital.

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