Simon Property Group has taken its pursuit of British mall owner Capital Shopping Centres up a notch with a new offer to buy the company for $4.8 billion. Simon had sent another letter over the weekend reiterating its opposition to Capital Shopping Centres' acquisition offer for Trafford Centre and offered an alternate method for financing that . Capital Shopping Centres rejected that proposition.
The $4.8 billion offer is 26 percent above Capital Shopping's share price immediately prior to the offer period and 21 percent above the average price for the six preceding months. In the latest letter, Simon CEO David Simon wrote, "Our interest in making an offer for CSC is, of course, not new. By making this offer on the terms outlined in this letter, we are confident that we have now answered any objections you have previously expressed. We believe that we should work together to announce a recommended offer, and would urge you to listen to calls from your shareholders - many of whom we have spoken to - opposing the Trafford Centre transaction or asking you to adjourn your forthcoming EGM.”
Update: Property Week is reporting that CSC has rejected Simon's offer. However, CSC has also decided to postpone the shareholder vote on its proposed Trafford Centre purchase, meaning that there will very likely be more back and forth between the firms before this is all said and done.