Simon says: Macerich offer 'best and final'

Fri Mar 20, 2015 10:53am EDT
 
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By Sagarika Jaisinghani and Herbert Lash

(Reuters) - Simon Property Group Inc (SPG.N: Quote), the No.1 U.S. mall owner, made what it said was its "best and final offer" for Macerich Co MAC.N three days after its smaller rival rejected its initial proposal and adopted a poison pill takeover defense.

Simon Property raised its cash-and-stock offer for Macerich on Friday to $95.50 per share from $91.00, and said it would withdraw the offer, valued at $23.2 billion, if Macerich did not meet with the company by April 1.

Macerich shares fell 8.4 percent in early trading, suggesting that investors doubt the deal would go through, given the company's strong defensive actions this week, including a change in its board structure.

"I guess people are saying Macerich won't bite," Sandler O'Neill & Partners analyst Alexander Goldfarb said. "Macerich's history has been very independent and marching to their own beat and I don't know if this is enough to compel them."

The new offer values Macerich at $15.10 billion, based on 158.16 million shares outstanding as of Feb. 20.

Simon Property said it would not nominate directors to Macerich's board "or otherwise prolong this process."

The company said all other terms of its offer were unchanged, including a ratio of 50 percent in cash and 50 percent in Simon Property common stock.

Macerich said it would review the new offer.   Continued...

 
Shoppers refer to a map at the King of Prussia Mall in Pennsylvania; a  2.7 million square feet shopping destination owned by Simon Property Group. Picture taken December 6, 2014.  REUTERS/Mark Makela