Simon pulls out of CSC bid
Published: 11 January, 2011
Simon Property Group has announced that it will not now make a formal bid for Capital Shopping Centres
Simon had been given a deadline of 12 January to either make a firm offer for CSC or to walk away and today it has announced that it will not bid. It attacked the CSC board for frustrating its efforts by not allowing it to carry out due diligence.
In a stock exchange announcement Simon said: “Despite numerous overtures from Simon and in full knowledge that Simon is not able to announce a firm offer without it, the CSC board has refused to share any due diligence information with Simon. Simon therefore has no alternative other than to announce that it does not intend to make an offer for the entire share capital of CSC, and CSC shareholders are unfortunately thereby deprived of the option to sell their shares pursuant to such an offer.”
But Simon reiterated its opposition to CSC’s proposed purchase of the Trafford Centre, saying: “The CSC board is still proposing to relieve the owner of the Trafford Centre of a potential tax liability of more than £300 million and to transfer significant control of CSC to Peel at a discounted price.”
And it warned that it may now sell its 5.11 per cent stake in CSC.
