Taubman Seeks Dismissal of Simon Claim

Meanwhile, Taubman Centers Inc. has filed a motion in federal court to dismiss a claim by Simon Property Group that would strip Taubman's preferred shareholders of voting rights and clear the way for a hostile takeover.Simon maintains that the Taubman family's receipt of original-issue shares of series B preferred stock in 1998 was a "control share acquisition" under Michigan state law and that the U.S. District Court for the Eastern District of Michigan should strip them of their voting rights. Taubman termed this allegation "frivolous and dangerously misleading." The state law, the Control Share Acquisitions Act, "was designed to discourage opportunistic raiders like Simon, not to facilitate their hostile bids," Taubman said. "That the act did not apply to the issuance of the series B shares is clear on its face and from all persuasive legal precedent and commentary." Taubman, a real estate investment trust specializing in shopping centers, can be found online at http://www.taubman.com.