Company ends mall takeover bid after change to law in Michigan

DETROIT (AP) -- A day after Gov. Jennifer Granholm signed a bill designed to help a Michigan-based shopping mall developer fend off a hostile takeover, the pursuing company withdrew its offer.
The Indianapolis-based Simon Property Group Inc. and its partner Westfield America Inc. dropped their $1.7 billion bid Wednesday to take over the Bloomfield-Hills-based Taubman Centers Inc. after a year of offers, extensions and a federal lawsuit.
"We're pleased that Simon Property and Westfield America have withdrawn their tender offer," Taubman spokesman Jeremy Jacobs said in a statement. "We will continue to run the business for the benefit of all shareholders."
Simon had tendered offers of $17.50 per share, followed by $18 and then $20. But Taubman family members and friends stopped the bids with their 33.6 percent controlling block of shares. A takeover needs a two-thirds vote in favor of the bid.
Simon filed suit against Taubman last December, saying Taubman breached its fiduciary duty by not considering Simon's last offer and by allowing the Taubman family to block the deal.
U.S. District Judge Victoria Roberts sided with Simon earlier this year, saying Taubman's voting arrangement violated Michigan's Control Share Acquisitions Act.
But the bill -- signed Tuesday -- changes Michigan's takeover law to put Taubman in compliance. It says shareholders' acting together is not a violation of law.