Simon battles on in bid for CSC
THE US property giant stalking Trafford Centre bidder Capital Shopping Centres is urging the firm’s shareholders to put pressure on its board to open up its books.
Simon Property Group issued a statement following Capital Shopping Centres’ announcement last week that it is to delay the shareholders’ meeting at which it hoped to gain approval for its £1.6bn purchase of the Trafford Centre. The meeting was delayed following an “indicative” bid from Simon of 425p for the Trafford Centre.
Simon Group said that it had renewed its request to have a look at CSC’s books in order to prepare a full £3bn offer for CSC, but had again been denied access.
Simon Group, which owns 6.25% of CSC, has been told by the Takeover Panel that it will have to make a firm bid for CSC by January 12 or walk away.
A statement from Simon Property Group said: “The CSC Board refuses even to enter into a discussion with Simon regarding any information it would be willing to provide.”
It added that CSC’s reason for postponing the shareholders’ meeting was to give them more clarity over Simon’s potential bid.
“However, by refusing to provide due diligence information to Simon, the Board of CSC is perpetuating the lack of clarity that it is complaining about,” the statement said.
“Now that the CSC Board has adjourned its EGM, it should use the additional time to assist Simon to announce a firm offer, which shareholders can then assess on its merits.”
Simon Group has opposed CSC’s £1.6bn purchase of the Trafford Centre and its own £3bn bid for CSC was conditional on the deal not being completed. Under the terms outlined to shareholders, Peel Group founder John Whittaker would receive 19.9% of shares in CSC, which could extend to around 25% if bonds were converted.
“Through its proposed Trafford Centre acquisition, the board of CSC has agreed to sell effective control of the company at a discount to NAV (net asset value),” said Simon.
“Simultaneously, the Board is impeding its shareholders from receiving a firm offer from Simon at a significant premium to NAV. The effect of this is to entrench the Trafford acquisition, at the expense of a more compelling alternative for shareholders.”
It has called on CSC’s shareholders to demand the board opens its books to allow Simon to prepare an offer before the January 12 deadline.
