NEW YORK - US mall king Simon Property made a $16 billion hostile offer for Macerich on Monday, after failing for four months to engage the smaller shopping center operator in friendly merger talks.
Simon offered $16 billion, or $91 a share, in cash and stock that represented a 30 percent premium to Macerich's price just before Simon disclosed a 3.6 percent shareholding in November.
It was about five percent above the company's closing price Friday. Simon put the total value of the offer at $22.4 billion, when including Macerich's $6.4 billion in debt.
Simon warned the company not to try to block the offer, after having failed several times to convince Macerich's board to negotiate.
"We urge Macerich to forego entrenching defensive tactics that obstruct the will of its shareholders and instead engage in serious discussions with us," said David Simon, Simon's chairman and chief executive, in a statement.
"It is our strong preference to work with Macerich to reach a mutually beneficial agreement, and we are available immediately to meet with Macerich and its advisors."
The deal would combine the country's largest shopping center operator, with about 182 million square feet (17 million square meters) of leasable space in 109 properties, with the mid-sized Macerich, holding 55 million square feet of property in 60 properties.
Simon owns the Premium Outlets and Mills chains of suburban malls; Macerich's mixed properties are mainly in California, Arizona and the New York region.
Macerich shares were up 6.0 percent in early trade at $91.93, while Simon shares added 0.7 percent at $181.75.
Copyright AFP
All rights reserved. This material may not be reproduced, published, broadcast,
rewritten or redistributed without prior permission in writing from AFP.