Taubman Rejects Simon's New Offer

The board of directors of Taubman Centers Inc., Bloomfield, Mich., has unanimously rejected the latest cash tender offer of Simon Property Group Inc., Indianapolis, to acquire all Taubman's outstanding shares at $18 per share.Taubman, which is being sued by Simon in federal district court, termed the tender offer "inadequate, opportunistic, and clearly not in the best interests" of Taubman's shareholders. Taubman cited an opinion by Goldman, Sachs & Co. that the offer is inadequate, as well as other factors such as timing, stock performance, and the opposition of the Taubman family and other shareholders with strong voting power. "Our collection of upscale regional mall assets cannot be replicated," said Robert S. Taubman, chairman, president, and chief executive officer of the real estate investment trust. ".... The board's position remains clear -- the company is not for sale." Regarding Simon's lawsuit, Mr. Taubman termed it "a cynical attempt to turn a state anti-takeover statute into a hostile takeover device." The suit maintains that Taubman's board is breaching its fiduciary duty by not giving "adequate consideration" to Simon's previous offer and by accepting "the Taubman family's claimed veto power over the offer." The REITs can be found online at http://www.taubman.com and http://www.simon.com.