INDIANAPOLIS — Simon Property Group has launched a $16 billion hostile bid for Macerich Co. after saying its rival refused to discuss a combination of two of the largest U.S. mall operators.
Simon said Monday that it was offering $91 per share in cash and stock for each share of Macerich. That represents a premium of 30 percent to the closing price of the mall operator’s shares on Nov. 18, before Simon disclosed that it had accumulated a nearly 4 percent stake in Macerich. The offer is valued at about $22.4 billion, counting Macerich’s debt.
Indianapolis-based Simon said the addition of Macerich would amount to a “strong strategic and geographic fit,” to its property portfolio, and it was confident that Macerich shareholders will accept its offer. Macerich said its board will review the proposal and, in the meantime, advised shareholders of the Santa Monica, Calif., company to take no action.
In Colorado, Macerich operates FlatIron Crossing in Broomfield and Twenty Ninth Street in Boulder. Simon owns Colorado Mills and nearby Denver West Village in Lakewood, the Town Center at Aurora and Mesa Mall in Grand Junction.
Simon said it was taking its bid to shareholders after Macerich refused to discuss an acquisition. Chairman and CEO David Simon told his Macerich counterpart, Arthur M. Coppola, in a letter dated Monday that it has been more than a week since the two sides discussed Simon’s interest, and he was disappointed that Coppola has not responded to him “as you said you would.”
