Shopping-mall operator Simon Property Group (NYSE:SPG) made an offer to buy U.K. shopping mail operator Capital Shopping Centers Group for 3 billion British pounds ($4.68 billion), an offer that was then promptly rejected.
Simon Property’s offer was about a 7% premium to Capital’s closing share price on Tuesday. The offer comes weeks after Capital said it would buy Manchester-based Trafford Centre for 747.6 million pounds, something Simon Property has been against.
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Capital Shopping Centers immediately rejected Simon Property’s bid, saying that the U.S.-based real estate company was trying to stop Capital from going ahead with its purchase of Trafford Centre.
Simon Property had said that its bid for Capital was contingent that Capital not go ahead with its purchase of Trafford Centre.
“The Board of CSC believes that this is yet another attempt by Simon to frustrate the Trafford Centre acquisition without putting forward a proper proposal for CSC shareholders to consider as an alternative,” Capital said in a statement.
Simon Property already owns a 5.6% stake in Capital and if Capital was to go ahead with its purchase of Trafford Centre, under the terms of the deal the Trafford Centre owner Peel Group would then become Capital’s largest shareholder.
Simon Property shares were down 1.2% on Wednesday to $96.59.