Mall operator Macerich has rejected a $16 billion hostile bid from competitor Simon Property Group and adopted a “poison pill” defense against a possible takeover.
Simon Property Group Inc., already the nation’s largest mall operator, went hostile this month after saying Macerich refused to negotiate a deal that would combine two of the largest U.S. mall operators.
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 Santa Monica, Calif.-based 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 assets to fellow mall operator General Growth Properties Inc.
Macerich operates FlatIron Crossing in Broomfield and Twenty Ninth Street in Boulder. Simon owns Colorado Mills and nearby Denver West Village, the Town Center at Aurora and Mesa Mall in Grand Junction. General Growth owns Park Meadows in Lone Tree and Southwest Plaza in Jefferson County.
Macerich said it thinks the partnership between Simon and General Growth “raises serious antitrust concerns as it is a concerted effort by the two largest companies in the industry to acquire the No. 3 company.”
