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What: Shares of Rouse Properties, (NYSE:RSE) are flying high on Tuesday, up nearly 31% at 1 p.m. EST, after Brookfield Asset Management (NYSE:BAM) made a bid to acquire the real estate investment trust.

So what: Rouse Properties owns 36 malls in 21 states, with roughly 25 million square feet of gross leasable area. Brookfield believes the market is undervaluing its real estate, offering $17 per share to acquire the company, a 26% premium to Friday's closing price of $13.49 per share.

Now what: A special committee is evaluating the proposed buyout. Interestingly, Rouse Properties shares traded at $17.63 at 1 p.m. EST, nearly 4% higher than the proposed transaction price. This could indicate investors' expectations of a second, higher bid by Brookfield before the transaction gets done. 

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