Name: Mall owners Simon and Taubman revise merger terms, with $800 million price cut
Brand: cnbc.com
SKU: cnbc-com-1240
Availability: OnlineOnly

critic

Mall owners Simon and Taubman revise merger terms, with $800 million price cut

preview

Key PointsLuxury mall owner has agreed to a lower price to merge with the biggest mall owner in America, , the companies announced Sunday, evading what could have been a heated legal battle during the holidays.Under the new deal, Simon will now pay $43 per share for Taubman, down roughly 18% from an original price of $52.50.The companies also said that they have settled their pending litigation. Simon and Taubman were set to face each other in Oakland County Superior Court in Michigan, beginning Monday, to negotiate the contested deal.In February, prior to the coronavirus pandemic arriving in the United States, Simon had agreed to buy&nbsp;Taubman in a deal valued , eyeing Taubman's 26 high-end malls that include a handful in Asia.&nbsp;. Among other things, Simon was arguing that Taubman's portfolio of shopping malls were suffering more than some of its peers' during the pandemic, due to lack of tourism and luxury spending.Taubman quickly filed a counterclaim, and the two were headed to court.But the announced revised terms signal there is hope in the retail real estate industry that traffic will rebound at America's best malls once a vaccine for Covid-19 is widely distributed and consumers regain confidence to head back to stores to shop.Even prior to the pandemic, malls had been suffering from falling foot traffic with more people shopping online, and retail and restaurant tenants closing stores or going bankrupt. The pain has been especially strong from embattled department store chains like Bon Ton and Sears. Two mall owners — CBL and Pennsylvania Real Estate Investment Trust — filed for Chapter 11 .With the new deal, Simon saves close to $800 million. Taubman has also agreed not to declare nor pay a common stock dividend before March of 2021.The original deal structure, where Simon will acquire an 80% ownership interest in Taubman while the Taubman family will sell roughly one-third of its ownership stake and remain a 20% partner, remains unchanged, the companies said.Both Simon's and Taubman's boards of directors have approved the terms of the transaction, which is expected to close either later this year or in early 2021. It remains subject to Taubman's shareholders' approval.Simon shares are down about 50% this year, while Taubman shares are up about 27%.Simon Property Group CEO David Simon says some mall tenants refuse to pay rent

Key PointsLuxury mall owner has agreed to a lower price to merge with the biggest mall owner in America, , the companies announced Sunday, evading what could have been a heated legal battle during the holidays.Under the new deal, Simon will now pay $43 per share for Taubman, down roughly 18% from an original price of $52.50.The companies also said that they have settled their pending litigation. Simon and Taubman were set to face each other in Oakland County Superior Court in Michigan, beginning Monday, to negotiate the contested deal.In February, prior to the coronavirus pandemic arriving...

public

Lauren Thomas

cnbc.com

Credible

Speculation

Anecdotal Evidence

Generalization

Stacking the Deck

Appeal to Authority

Straw Man

Slippery Slope

Emotional Appeal

Red Herring

False Dilemma

Illogical

Moral Equivalency

Ad Hominem

Correlation w/o Causation

Semantics

Begging the Question

Faulty Analogy

Non Sequitur

Bandwagon

Dogmatism

Failing Occam's Razor

Biased

Pure Opinion

Hit Piece

Racial Bias

National Bias

Religious Bias

Financial Incentive

Political Agenda

Gender Bias

Misused Image/Video

Study Misinterpreted

Mistake

Misused Term

Science Misrepresented

Factual Error

Satire

Surface Level

Lack of Reliable Sources

Sensational

Not Credible

Investigative

Balanced

Well Sourced

Great Context

sports

entertainment

U.S.

international

business

technology

science

culture

politics

media

health

Mall owners Simon and Taubman revise merger terms, with $800 million price cut

No article scores yet.

CRITIC REVIEWS

PUBLIC REVIEWS