Capital Shopping Centres (CSC) (LSE:CSCG), Simon Property (NYSE:SPG)

Simon Property ends its CSC takeover bid

SPG, LSE:CSCG

The USA’s Simon Property (NYSE:SPG) gave up its 2.9B GBP (US$4.5B) bid to take over UK’s Capital Shopping Centres (CSC) (LSE:CSCG) Tuesday, clearing the way for the UK’s largest mall-owner to buy the Trafford Center Mall owned by British billionaire John Whittaker,

Analysts had predicted Simon would give up rather than raise its 425 p per share offer to buy CSC, after CSC Friday cut the price it would pay for the Trafford Center in Manchester to boost its a defense against Simon’s approach.

Simon, a 5.1% CSC shareholder, said it still opposed CSC’s plan to pay for Trafford Center with new shares, which would dilute its stake, but said it was unable make an offer because CSC had not provide the due diligence information it had requested.

CSC shareholders are to vote on January 26 on the Trafford Center transaction, which would give the mall’s owner, Peel Group, owned by British billionaire John Whittaker, a 23.2% stake in CSC.

Indianapolis-based Simon, which had to formalize its offer for CSC by Wednesday under British takeover law, said it reserved the right to make or participate in another offer for CSC within the next 6 months under takeover guidelines.

The UK Takeover Panel said market activity in CSC would continue to be regulated, due to Simon’s statement that it may sell its CSC stake or acquire more shares. (US$1=.642GBP)—Paul A. Ebeling, Jnr. www.livetradingnews.com

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Posted by Shayne Heffernan on Jan 12th, 2011and filed underEquities, Europe, Latest News, Markets, News & Events.You can follow any responses to this entry through theRSS 2.0You can leave a response by filling following comment form or trackback to this entry from your site