Taubman Retorts

Taubman Centers Inc., a real estate investment trust based in Bloomfield Hills, Mich., has replied to what it termed "numerous and repeated misleading statements" by Simon Property Group Inc. regarding Taubman's 1998 restructuring.Taubman recently rejected an unsolicited offer by Simon, an Indianapolis-based REIT, to acquire Taubman for $17.50 per share in cash, sparking a round of recriminations. "Any allegation by Simon of impropriety or invalidity with respect to the company's 1998 restructuring is a 'red herring' and utterly baseless," Taubman said. "The Taubman family gave up pre-existing special rights in the 1998 restructuring, and a democratic voting and governance structure was established. In the 1998 restructuring, the independent directors of the company, after undertaking an extensive process during which they received independent financial and legal advice, unanimously approved the restructuring." Simon has alleged that certain preferred shares were improperly obtained by the Taubman family in 1998 without a shareholder vote. Taubman can be found on the Web at http://www.taubman.com.