Simon Drops Taubman Takeover Bid

Simon Property Group and Westfield America have withdrawn their $20-per-share cash offer for Taubman Centers common shares, bringing an end to the takeover battle for Taubman that was initiated almost a year ago.The signing into law of an amendment to the Michigan Control Share Acquisition Act by Michigan Gov. Jennifer Granholm has prompted the Indianapolis-based Simon and the U.S. subsidiary of Australia-based Westfield America Trust to put an end to their bid, the two companies said. The amendment was made to nullify an earlier ruling by a U.S. District Court in Michigan that the Taubman family and their affiliates could not vote their shares against the tender offer because Taubman's activities created a control share acquisition under the act. The enactment of the amendment with retroactive effect enables the Taubman faction to block the Simon/Westfield takeover attempt without the approval of other shareholders. The Bloomfield Hills, Mich.-based Taubman said it is "pleased that Simon Property and Westfield America have withdrawn their tender offer."