By Anjie Zheng
Real-estate investment trust Macerich Co. (MAC) has rejected a
proposal from rival Simon Property Group Inc. (SPG) to acquire it
for US$95.50 per share, saying that the proposal undervalues the
company.
"The board unanimously concluded that your proposal continues to
substantially undervalue Macerich and its prospects for continued
growth and shareholder value creation," wrote Macerich Chairman and
Chief Executive Officer Arthur M. Coppola in a letter to Simon
Property Group.
The Santa Monica, California-based Macerich, the third-largest
operator of malls in the U.S., said it had worked to expand and
redevelop its core portfolio in the past three years, positioning
itself to deliver strong profits in the future.
Analysts had expressed concerns that an acquisition by Simon
Property, the largest mall operator in the U.S., would give Simon
too much leverage over retailers, and nearly unchecked power to
raise rents and open or close stores.
Simon Property has withdrawn its offer to acquire Macerich.
Write to Anjie Zheng at anjie.zheng@wsj.com
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