CSC gives Simon cold shoulder

Capital Shopping Centres (CSC) has rejected Simon Property Group’s 425p a share bid, saying it “very substantially undervalues the company”.

CSC, the largest owner of regional shopping centres in the UK, said it believed the £2.9bn bid was “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”.

It has delayed a shareholder vote over its contested £1.6bn purchase of the Trafford Centre in Manchester from Peel Holdings. The date of the adjourned EGM is now expected to be in late January. CSC said it believed the inclusion of the Trafford Centre in its portfolio would significantly enhance the company’s value and the total portfolio would generate long term attractive returns for shareholders significantly superior to Simon’s cash proposal.

Simon, who owns five percent of CSC, said there could be no serious doubt as to its desire and ability to complete the proposed transaction. And it claimed other shareholders were against the Trafford Centre acquisitions.