The planned merger of two mall giants is off — or is it? Two Miami centers are affected
Simon Property Group, the country’s largest mall operator, announced Wednesday that it is pulling the plug on its deal to buy mall operator Taubman Realty in a deal valued at around $3.6 billion. But Taubman isn’t ready to fold.
In a statement released Wednesday afternoon, Taubman wrote:
“Taubman believes that Simon’s purported termination of the Merger Agreement is invalid and without merit, and that Simon continues to be bound to the transaction in all respects. Taubman intends to hold Simon to its obligations under the Merger Agreement and the agreed transaction, and to vigorously contest Simon’s purported termination and legal claims. Taubman intends to pursue its remedies to enforce its contractual rights under the Merger Agreement, including, among other things, the right to specific performance and the right to monetary damages, including damages based on the deal price.”
In a release issued Wednesday morning, Simon said it was pulling out of the deal because of coronavirus.
According to the release, Simon claims that Taubman’s value has substantially decreased because of the pandemic as compared with others in the industry. It also claims that Taubman failed to cut operating expenses to mitigate the pandemic’s economic impact.
In South Florida, Taubman operates Dolphin Mall and is set to run retail at downtown’s Miami Worldcenter. Simon operates and/or owns Dadeland Mall, Florida Keys Outlet Marketplace, Miami International Mall, Sawgrass Mills, The Falls, and has an interest in Aventura Mall.
The merger between Simon and Taubman was signed in February, prior to the widespread outbreak of COVID-19. Under that deal, Simon was set to buy all of Taubman stock for $52.50 per share. At Wednesday’s close, the price had dropped $36.17, down $9.08 from Tuesday’s close of $45.78. Simon closed at $83.01, down $3.46 from Tuesday.
This story was originally published June 10, 2020 at 10:54 AM.
