Simon walks away

Simon Property Group has walked away from making a formal bid for Capital Shopping Centres Group (CSC). Simon said it was unable to proceed with a formal bid for CSC without access to due diligence information.

Simon said it reserved the right to sell some, or all, of its existing 5.1 percent holding as well as to increase its holding up to a level of 29.9 percent if it so wished. It is now not able to make another approach for six months to acquire the company.

Simon said it continued to oppose “the value-destructive” Trafford Centre transaction that CSC was planning and urged its fellow CSC shareholders to vote against it at the Extraordinary General Meeting (EGM) on January 26.

CSC said it continued to recommend that its shareholders vote in favour of the revised Trafford Centre acquisition at the forthcoming EGM, believing the acquisition of the regional shopping centre presented a rare opportunity for the company.