WSJ: Simon Property Group Makes Takeover Bid For Macerich

(RTTNews) - Mall operator Simon Property Group Inc. (SPG) made its latest takeover approach to smaller rival Macerich Co. (MAC) within the past few weeks, the Wall Street Journal reported Tuesday, citing people familiar with the matter.

According to the WSJ report, in late 2014 too, Simon Property had made an approach for Macerich. However, the company has not yet made a formal offer for the Santa Monica, California-based real estate investment trust, which has a market value of $13.25 billion.

A combination of the Simon and Macerich would bring together the country's first- and third-largest shopping-mall owners. It would also enable Indianapolis, Indiana-based Simon, which has 190 properties, to expand in the West. Macerich owns 59 malls in the U.S., concentrated in California and Arizona.

However, Macerich has in recent weeks been discussing a potential takeover defense with its advisers, the WSJ reported.

In November 2014, Simon said it accumulated 5.71 million common shares, or a 3.6 percent stake in Macerich, which was seen as its first step in a takeover bid. Shares of Macerich had surged following the news.

Macerich said last year that it will partner with home-builder Lennar Corp. (LEN) to develop a 500,000 square-foot luxury-outlet mall in San Francisco's Candlestick Point.

In May 2014, Simon completed the spinoff of its strip centers and smaller enclosed malls into an independent, publicly traded real-estate investment trust called Washington Prime Group Inc. (WPG).

SPG closed Wednesday's trading at $187.56, down $2.05 or 1.08 percent on a volume of 1.02 million shares.

MAC closed Wednesday's trading at $83.80, down $0.61 or 0.72 percent on a volume of 590,240 shares. However, in after-hours, the stock gained $4.40 or 5.25 percent to $88.20.