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US: Macerich rejects Simon’s $16 billion hostile takeover bid

By  |  September 9, 2014

Macerich, the third-largest US shopping mall owner, rejected a $14.39 billion unsolicited offer from larger rival Simon Property Group, saying the proposal “substantially undervalues” the company.

Macerich also said on Tuesday it adopted a poison pill, or a shareholder rights plan, with a 10 percent trigger and changed its board structure to thwart a hostile takeover.

Shares of Macerich, which received the $91 per share offer earlier this month, fell as much as 5 percent to $90.29 in early trading. Including debt, the offer was valued at $22.4 billion.

“Macerich’s rejection is based on a rosy view of its future prospects,” Simon Property Chief Executive David Simon said in a statement, calling the rejection an “extreme, scorched-earth response”.

 

Full Content: The New York Times

 

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