The two largest shareholders of troubled US shopping centre developer Mill Corp have made separate offers to resuscitate the company.

California hedge fund Farallon Partners earlier this week offered to pay $499m (£250m) to recapitalise Mills, which is a REIT, in exchange for 25m new shares. The $19.20-a-share offer from Farallon, which owns a 10.9% stake in Mills, would give it more than one-third of the company's shares.

In a separate move yesterday, Gazit-Globe, the Israeli property company and the second-biggest holder of Mills shares, revised its recapitalisation proposal to $1.1bn (£550m) It would buy $500m (£250m) of new shares at an average price of $21 a share and ensure the sale of another $600m (£300m) through a share offering.

Gazit has issued two previous higher-priced recapitalisation offers to Mills, for $24.50 a share in October and $25.50 a share in November. The latest offer is lower because Mills’ shares plunged last week after it disclosed the results of an internal investigation into accounting irregularities.

A recapitalisation would provide Mills with liquidity and a chance to stabilise itself, but would dilute the value of existing stockholders' shares.