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Simon eyes Macerich for potential acquisition


Indianapolis -- Simon Property Group has put out feelers to acquire The Macerich Company, confirmed by a letter from Simon chairman and CEO David Simon to Arthur Coppola, chairman and CEO of Macerich.

Macerich has not responded to the offer, although the letter from Simon references prior discussions that include a proposal by Simon to acquire all of the outstanding stock of Macerich for $91.00 per share in cash and Simon shares. The total value of the proposed transaction is approximately $22.4 billion.

Simon added that it has reached an agreement in principle to sell selected Macerich assets to General Growth Properties in connection with the closing of the acquisition.

"We believe Simon's cash and stock offer would bring compelling value to shareholders of both companies,” said David Simon. “Macerich shareholders would receive a significant current cash premium as well as the long-term upside potential of an investment in Simon. … Macerich's assets represent a strong strategic and geographic fit for Simon, and we believe this is an attractive opportunity to create long-term value for Simon shareholders,” said Simon.

David Simon revealed that the two companies met last December and again in February to discuss the potential transaction but that “Macerich has thus far refused to engage in discussions with us regarding the merits of an acquisition by Simon.”

Simon's board of directors has unanimously endorsed the proposal.

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