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Simon may drop interest in Capital Shopping Centres

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Indianapolis-based Simon Property Group Inc. will end its interest in buying Capital Shopping Centres Group Plc if the U.K. company doesn’t provide information necessary to evaluate a bid. Capital Shopping fell as much as 4.7 percent in London trading.

“By declining to provide us with the requested limited due diligence information, you have constrained the exploration of an opportunity to benefit your shareholders,” Simon said in a letter to Capital Shopping included in a statement Wednesday.

Simon, the largest U.S. mall owner, said last month it was considering an unspecified cash bid worth more than Capital Shopping’s net assets. Capital Shopping rejected a request from Simon to delay selling shares and buying the Trafford Centre mall in northwest England, a move that would have given the U.S. company more time to prepare an offer.

“I think it’s a done deal,” Graham Jones, an analyst at Arbuthnot Securities Ltd., said today by telephone. “Capital Shopping will press ahead and Simon will disappear off the share register.” Jones doesn’t have a rating on the stock.

Capital Shopping shares had the biggest decline in two weeks. They were down 15.6 pence, or 3.8 percent, at 392.4 pence at 9.59 a.m., reducing the company’s market value to 2.7 billion pounds ($4.2 billion).

Michael Sandler, a spokesman for Capital Shopping, declined to comment. In a Nov. 24 statement, the company announced a plan to buy the Trafford Centre from closely held Peel Group for 1.6 billion pounds in stock and assumed debt. The total purchase price would be the highest ever paid for a British mall.

“If the proposed Trafford Centre acquisition is approved, we would need to consider liquidating our position in CSC,” Simon said in its letter. The company has a 5.1 percent stake in London-based Capital Shopping, Britain’s biggest mall owner.

Simon said the U.K. company is “substantially overpaying” for the mall in a transaction that would give Peel a stake of as much as 25 percent in Capital Shopping. Investors are scheduled to vote on whether to approve the transaction on Dec. 20.

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  1. Now if he'd just stay there...

  2. Daniel - what about the many US citizens who do NOT follow what the Bible teaches? The Hindus, Jews, Muslims and others who are all American citizens entitled to all rights as Americans?? This issue has NOTHING to do with "What the Bible says..." Keep all Churches separate from State! Pence's ongoing idiocy continues to make Indiana look like a backwards, homophobic state in the eyes of our nation. Can't we move on to bigger issues - like educating our kids?

  3. 1. IBJ should link to the referenced report. We are in the age of electronic media...not sharing information is lazy. Here is a link http://www.in.gov/gov/files/Blue_Ribbon_Panel_Report_July_9_2014.pdf 2. The article should provide more clarity about the make-up of this panel. The commenters are making this item out to be partisan, it does not appear the panel is partisan. Here is a list of the panel which appears to be balanced with different SME to add different perspectives http://www.in.gov/activecalendar/EventList.aspx?view=EventDetails&eventidn=138116?formation_id=189603 3. It suggests a by-pass, I do not see where this report suggests another "loop". 4. Henry, based on your kneejerk reaction, we would be better off if you moved to another state unless your post was meant as sarcasm in which case I say Well Done. 5. The article and report actually indicates need to improve rail and port infrastructure in direct contradiction to Shayla commentary. Specifically, recommendation is to consider passenger rail projects... 6. People have a voice with their elected officials. These are suggestions and do not represent "crony capitalism", etc. The report needs to be analyzed and the legislature can decide on priorities and spending. Don't like it, then vote in a new legislature but quit artificially creating issues where there are none! People need to sift through the politics and provide constructive criticism to the process rather than making uninformed comments in a public forum based on misinformation. IBJ should work harder to correct the record in these forums when blatant errors or misrepresentations are made.

  4. Joe ... Marriage is defined in the Bible ... it is mentioned in the Bible often. Marriage is not mentioned once in the US or Indiana Constitution ...

  5. Daniel - Educate me please: what does the Bible have to do with laws? If the government wasn't in the business of marriage to begin with, then it wouldn't have to "define" marriage at all. Marriage could be left as a personal, religious, or otherwise unregulated action, with no ties to taxes, legal status, etc. Then people could marry whomever they want, and all this silliness would go away. Remember to vote Libertarian in November.

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