Bill Threatens Simon Takeover Plan

The Michigan State Senate has passed an amendment that clarifies the intent of the Michigan Control Share Acquisitions Act and makes a Simon Property and Westfield America takeover of Taubman Centers more difficult.According to an interpretation of the amendment by the J.P. Morgan equity REIT team, the changes in law -- which passed on a 24-14 vote -- clarify that "the formation of voting groups do not trigger a 'Control Share Acquisition,' where disinterested parties are needed to confer voting rights." An earlier ruling based on the unamended legislation had blocked the Taubman family from voting the Taubman stock specifically acquired to prevent the takeover. The analysts said the likelihood of a takeover "diminishes significantly" because the Taubman family and their friends control more than one third of the real estate investment trust and can now vote their shares. The bill now goes to Gov. Jennifer Granholm for her signature. A statement from SPG and Westfield calls the amendment "special bailout legislation, actively promoted by the Taubman family" and urges the governor to veto it. A Simon spokesman told MortgageWire that the legislation hasn't been signed yet, and "there's still hope."