Court Clarifies Taubman Ruling

A Michigan court has clarified its ruling on the Simon/Westfield takeover case, declaring that the management of Taubman Centers cannot vote its entire 33.6% block of shares in Taubman without getting permission from the majority of disinterested shareholders.Taubman's management intends to appeal the decision, and still contends that it has prevailed over Simon based on some minor points. The Bloomfield Hills, Mich.-based Taubman has reported a net loss of $7.1 million ($0.14 per share) in the first quarter, up from a net loss of $2.3 million ($0.05 per share) a year earlier. In a related teleconference, Robert S. Taubman, chairman and chief executive officer of Taubman Centers, said he expects the real estate investment trust's funds from operations for the year to be in the range of $1.80-$1.84 per share, excluding the costs associated with fending off the Simon/Westfield "hostile offer." He said their takeover strategy from the beginning has been "to throw everything against the wall and hope that something sticks," adding that "something has stuck, for the moment." Mr. Taubman refused to take any questions relating to the takeover during the teleconference.