Mall operator Simon Property Group launches $16 billion hostile bid for Macerich

StocksAssociated Press

Simon Property Group is launching a hostile bid worth about $16 billion for Macerich Co., after it saying the rival mall operator refused to discuss a combination.

The two mall operators are among the largest in the United States.

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Simon is offering $91 per share in cash and stock for each share of Macerich. That represents a premium of 30 percent to the closing price of the mall operator's shares on Nov. 18, before Simon disclosed that it had accumulated a nearly 4 percent stake in Macerich.

The deal is valued at about $22.4 billion, counting debt.

Indianapolis-based Simon says it is confident that Macerich shareholders will accept its proposal.

A representative of Santa Monica, California-based Macerich did not immediately return a call from The Associated Press seeking comment.