Simon raises bid for rival to $16.8B

Associated Press

NEW YORK

Mall operator Simon Property boosted its hostile bid for rival Macerich by 5 percent to $16.8 billion and said it will be its best and final offer.

The proposed deal would combine two of the largest U.S. shopping-mall operators. Simon operates Southern Park Mall in Boardman.

Simon set an April 1 deadline for Macerich to respond to the offer or it will be withdrawn.

Shares of Macerich dropped more than 4 percent Friday, while Simon Property shares rose nearly 3 percent.

Simon said Friday that it is now offering to pay $95.50 per share for Macerich, up from its previous offer of $91 per share. The new offer is valued at $23.2 billion, when debt of about $6.4 billion is included. Simon, which has a 3.6 percent stake in Macerich, said it won’t seek to nominate directors for Macerich’s board.

With the new offer, Macerich shareholders may put pressure on the company to discuss the deal, said analysts at Citi in a note to clients.

In a statement, Macerich said it would review the new offer.