Macerich rebuffs Simon bid

Associated Press

SANTA MONICA, Calif.

Mall operator Macerich has rejected a $16 billion hostile bid from competitor Simon Property Group and adopted a “poison pill” defense to defend against a takeover.

Simon Property Group Inc., already the nation’s largest mall operator, went hostile earlier this month after saying that Macerich refused to negotiate a deal that would combine two of the largest U.S. mall operators. Simon operates Southern Park Mall in Boardman.

Indianapolis-based Simon offered $91 per share in cash and stock for each Macerich share. The offer is valued at about $22.4 billion, counting Macerich debt.

Macerich said Tuesday that Simon’s offer significantly undervalues the company and isn’t in the best interests of its shareholders. The company also said that it has concerns over Simon’s plan to sell some of its assets to fellow mall operator General Growth Properties Inc.

Macerich said it thinks the partnership between Simon and General Growth Properties “raises serious antitrust concerns as it is a concerted effort by the two largest companies in the industry to acquire the No. 3 company.”

Macerich said that it feels it needs to be proactive to protect shareholder value and prevent the accumulation of stock by any group that may want to force the sale of the company. Macerich said that its shareholder- rights plan, which often is referred to as a “poison pill,” will expire at its 2016 annual shareholders meeting unless redeemed or otherwise exchanged.

Simon Chairman and CEO David Simon said in a statement that the company was disappointed Macerich wouldn’t meet to talk about its proposal.