Simon Property discloses stake in Macerich

Bloomberg News//November 19, 2014//

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Simon Property Group Inc., the biggest U.S. mall owner, said it has accumulated a 3.6 percent stake in rival Macerich Co. and may seek to buy more. Macerich jumped to a seven-year high on speculation it may be taken over.

Simon bought 5.71 million shares of Macerich this year and may request that Macerich waive a provision that restricts ownership to 5 percent, the real estate investment trust said in a statement Wednesday. Simon cited the recent acquisition of a 10.9 percent interest in Santa Monica, California-based Macerich by an investor it didn’t name.

The transaction puts Macerich, with its high concentration of West Coast properties, “in play” as a potential takeover candidate, JPMorgan Chase & Co. analysts led by Michael Mueller and Anthony Paolone said in a note to clients Wednesday. The malls would be a good geographic fit for Indianapolis-based Simon, which has “been quite acquisitive over the years,” they wrote.

Macerich climbed 9.6 percent in New York trading to close at $76.58, the highest since November 2007. Simon slipped 1.6 percent to $176.37.

A phone message left for Thomas O’Hern, Macerich’s chief financial officer, wasn’t immediately returned.

In Minnesota, Simon owns Albertville Premium Outlets in Albertville; Miller Hill Mall in Duluth; Twin Cities Premium Outlets in Eagan; Southdale Center in Edina; and Maplewood Mall in Maplewood.