Simon Properties has halted its unsolicited pursuit of rival mall developer Macerich Company. Simon CEO David Simon made his $22.4 billion hostile bid for Macerich public last month after the company refused to negotiate.
In a brief statement last week, Simon Property said, “[The company] today confirmed that it has withdrawn its offer to acquire the outstanding shares of The Macerich Company for $95.50 per share, in light of the decision by the Macerich board of directors not to engage in discussions with Simon.”
Simon’s first offer of $91 per share included assumption of Macerich’s $6.4 billion in debt. Simon raised the offer on March 20 to $95.50 per share, or $23.2 billion including the debt. Macerich said the offer undervalued the company.
Simon Property Group, which owns The Forum Shops in Las Vegas and Woodbury Common Premium Outlets in New York, is the largest high-end mall operator in the country with 37 properties. Macerich owns 54 million sq. ft. in 51 malls across the U.S.