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Tuesday, March 17, 2015

Macerich rejects Simon Property offer, adopts poison pill, (NYQ: SPG)

Macerich Co, the third-largest U.S. shopping mall owner, rejected a $14.39 billion unsolicited offer from larger rival Simon Property Group Inc, saying the proposal "substantially undervalues" the company.Macerich also said on Tuesday it adopted a poison pill, or a shareholder rights plan, with a 10 percent trigger and changed its board structure to thwart a hostile takeover.Shares of Macerich, which received the $91 per share offer earlier this month, fell as much as 5 percent to $90.29 in early trading. Including debt, the offer was valued at $22.4 billion."Macerich's rejection is based on a rosy view of its future prospects," Simon Property Chief Executive David Simon said in a statement, calling the rejection an "extreme, scorched-earth response".

Simon Property Group, Inc. is a self-administered and self-managed real estate investment trust (REIT). Shares of SPG fell by 0.5% or $-0.94/share to $186.13. In the past year, the shares have traded as low as $147.77 and as high as $206.31. On average, 1465230 shares of SPG exchange hands on a given day and today's volume is recorded at 1600266.