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UPDATE: United Kingdom mall owner rejects Simon bid

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Capital Shopping Centres Group Plc, the United Kingdom's biggest shopping mall owner, rejected an offer from Simon Property Group Inc. valuing the company at 2.9 billion pounds ($4.6 billion), describing it as “inadequate.”

Simon, the largest U.S. mall owner, offered 425 pence ($6.66) a share in cash. The Tuesday bid “very substantially undervalues the company and its prospects,” London-based Capital Shopping said Wednesday in a statement.

Simon’s bid was conditional on Capital Shopping Centres abandoning a plan to buy the Trafford Centre mall in Manchester, which would be the U.K.’s biggest property purchase. The British company agreed last month to pay 1.6 billion pounds in shares and assumed debt for the mall.

Capital Shopping said Wednesday that its board will propose adjourning an extraordinary general meeting scheduled for Dec. 20 to approve the Trafford Centre acquisition until late January.

Simon’s proposed offer was 13 percent higher than Capital Shopping’s net asset value of 377 pence ($5.91) a share as of Nov. 1.

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