New Twist to Simon/Taubman Tale

There is a new twist to the tale of Simon Property Group's attempt to acquire Taubman Centers, as the two real estate investment trusts have interpreted a Michigan federal court ruling in different ways.Taubman says the U.S. District Court for the Eastern District of Michigan has granted its motion to dismiss "the central claim" of Simon's lawsuit -- that the issuance of series B preferred shares to the Taubman family required a shareholder vote -- because the Michigan Control Share Acquisition Act does not pertain to a direct issue from a corporation of its own shares. Simon maintains, however, that the ruling only says the 1998 issuance was "in technical compliance" with the statute and that Simon "has a viable legal claim that the Taubman family's one-third voting position in Taubman Centers was obtained without a shareholder vote in violation of Michigan law." The Indianapolis-based Simon said the judge ruled that "the Taubman family's claimed blocking position in the company may be challenged" by Simon at a March 21 hearing. A spokesman for Taubman said the lawyers for both sides had given their own interpretations of the ruling. Taubman maintains that Simon's central argument has been dismissed and that the March 21 hearing will consider other matters. Simon did not return phone calls by deadline time.