YOU ARE HERE: LAT HomeCollections


Taubman Rejects Takeover Offer From Simon Property

November 14, 2002|From Associated Press

Taubman Centers Inc. said Wednesday that its board rejected an unsolicited $1.5-billion takeover offer by North America's largest shopping mall owner, Indianapolis-based Simon Property Group Inc.

Shares of Taubman, which said it has no interest in further discussions of a deal, nonetheless rose 12%, as some investors apparently bet the company could be forced into a merger.

Both companies have malls in Southern California. Bloomfield Hills, Mich.-based Taubman owns Beverly Center in Los Angeles and Simon owns the Shops at Mission Viejo and Brea Mall, among others.

Simon Property's offer valued Taubman Centers at $17.50 in cash per common share. The offering price would total $920 million.

Simon Property also proposed to negotiate the acquisition of Taubman operating units valued at $550 million.

"Our all-cash offer would deliver to Taubman shareholders a substantial premium -- approximately 18% above [Tuesday's] closing price and 30% above the price on the day we initially made our offer," Simon said. "And it exceeds the highest price at which Taubman shares have ever traded."

Taubman issued a statement saying its board "unanimously concluded that Taubman Centers has no interest in pursuing a sale transaction, and that discussions regarding such a transaction would not be productive."

The statement also said the Taubman family is not interested in selling the company.

Shares of Taubman closed at $16.59 on the New York Stock Exchange, up $1.79. Simon shares declined 85 cents, or 2.5%, to $33.10, also on the NYSE.

Simon Property's takeover offer was the latest attempt at consolidation in an industry that has experienced several acquisitions in recent months, said a spokeswoman for the International Council of Shopping Centers, an industry trade group.

Simon owns or has an interest in 249 properties totaling nearly 186 million square feet in 36 states.

Los Angeles Times Articles