Taubman Again Refuses Simon Offer

Taubman Centers has again refused to consider Simon Property Group's $20 per share offer for the Bloomfield Hills, Mich.-based retail real estate investment trust.In a letter addressed to David Simon, chief executive officer of SPG, and Peter Lowy, CEO of Westfield America (who has joined forces with SPG), Taubman said, "We are not prepared to recommend to the shareholders the sale of this company at an inadequate price. Nor do we believe that maximum value will be realized by selling the company at this time." The latest Taubman refusal comes in response to a Simon announcement Feb. 27 that it intends to propose, at Taubman's forthcoming March annual meeting, an amendment to an excess share provision in Taubman's charter to permit the consummation of SPG and Westfield's $20 offer for the Taubman common shares. The proposed amendment would allow SPG and Westfield to buy Taubman shares without violating the excess share provision in Taubman's charter, which prevents them from acquiring over 8.23% of Taubman shares.