{"id":1004115158,"date":"2015-03-10T07:12:24","date_gmt":"2015-03-10T15:12:24","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004115158"},"modified":"2022-12-03T21:14:33","modified_gmt":"2022-12-04T05:14:33","slug":"simon-proposes-to-macerich-but-is-the-ring-big-enough","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/simon-proposes-to-macerich-but-is-the-ring-big-enough\/","title":{"rendered":"Simon Proposes to Macerich, But is the Ring Big Enough?"},"content":{"rendered":"

By Barbra Murray, Contributing Editor<\/em><\/p>\n

Simon Property Group Inc.\u2019s proposed $22.4 billion acquisition of The Macerich Co<\/a>. is producing the usual commotion that follows a multi-billion buyout offer: criticism, congratulations, speculation and the like. With Macerich Co. having confirmed its receipt of Simon\u2019s unsolicited proposal to acquire the regional mall owner and developer for $91 per share in cash and stock, along with the assumption of $6.4 billion of existing debt, the REIT sector and its watchers eagerly await the next move.<\/p>\n

Buzz about a potential offer has been swirling<\/span> <\/a>for months. <\/b>So Simon has gone down on one knee, and now the big question becomes whether or not Macerich will say yes. Macerich can’t hold out forever, with Simon CEO David Simon having just sent a letter to Arthur Coppola, CEO of Macerich, writing that he is “disappointed you have not gotten back to me as you said you would.” (No thinly veiled hostility there).<\/p>\n

So Simon has gone down on one knee, and now the big question becomes whether or not Macerich will say yes. As detailed in its note on the proposed acquisition, brokerage and investment banking firm Stifel suggests that Macerich, placing a high value on its own notable development and redevelopment opportunities, will likely reject Simon\u2019s offer of $91 per share and potentially spur a long takeover battle. Perhaps $16 billion is something to sneeze at in this case-or perhaps not.<\/p>\n

\u201cIt\u2019s very difficult to say what a very good regional mall is worth; that\u2019s the hard part of this whole exercise,\u201d Rich Moore, an analyst with investment banking firm RBC Capital, told Commercial Property Executive<\/i>. \u201cRegional malls grow very nicely, they\u2019re marquis, consumers want to shop at them, as such tenants want to be there and they pay ever-higher prices to be there. So it\u2019s very hard to say exactly what a good price would be.\u201d Like Stifel, Moore believes $91 per share may not do the trick.<\/p>\n

\u201cI think Simon will have to go as high as $100 to really get this to happen,\u201d Moore suggested. \u201cWould they really do that? They might. Class A regional malls are a little bit like Disneyworld; they\u2019re wonderfully entertaining places that are unique in the environments that they\u2019re in and as such, you might be willing to go to a pretty lengthy extreme to get these properties.\u201d<\/p>\n

While analysts and industry experts ponder the \u201cwill they or won\u2019t they\u201d issue and the \u201cis the price right\u201d question, the ratings community looks at the potential impact of the purchase from another perspective. Fitch Ratings stated that should the current offer go through, it \u201cwould likely have negative credit implications for Simon,\u201d increasing the REIT\u2019s leverage while decreasing its unencumbered asset coverage of unsecured debt.<\/p>\n

And what\u2019s a mega-merger proposal without a few threats of legal action?\u00a0 Law firm Rigrodsky & Long P.A. announced that it has commenced an investigation into potential legal claims of Macerich\u2019s board of directors\u2019 possible breaches of fiduciary duties pertaining to the company\u2019s receipt of Simon\u2019s offer.<\/p>\n

While REIT watchers scrutinize the notion of a Simon-Macerich marriage, they\u2019re also pondering the potential ramifications of such a transaction, they\u2019re wondering if Simon\u2019s acquisition of Macerich will spur more mergers among the big Class A shopping center REITs, such as General Growth Properties and Taubman.<\/p>\n

\u201cIt\u2019s always the question that comes up when two REITs end up combining. Everyone\u2019s thinking, here we go; here comes the wave of mergers. But you know, it never happens,\u201d Moore added. \u201cIt\u2019s always just that a particular combination made sense at that time. One went after the other and they had a protracted negotiation of some kind and it ended up occurring, and then that was the end of it.\u201d<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Simon Property Group’s proposed $22 billion acquisition of The Macerich Co. is producing the usual commotion that follows a multi-billion buyout offer: criticism, congratulations, speculation and the like. <\/p>\n","protected":false},"author":969,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21783,21742],"tags":[],"class_list":["post-1004115158","post","type-post","status-publish","format-standard","hentry","category-investment","category-latest"],"acf":[],"yoast_head":"\nSimon Proposes to Macerich, But is the Ring Big Enough? - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/simon-proposes-to-macerich-but-is-the-ring-big-enough\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Simon Proposes to Macerich, But is the Ring Big Enough?\" \/>\n<meta property=\"og:description\" content=\"Simon Property Group's proposed $22 billion acquisition of The Macerich Co. is producing the usual commotion that follows a multi-billion buyout offer: criticism, congratulations, speculation and the like.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/simon-proposes-to-macerich-but-is-the-ring-big-enough\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2015-03-10T15:12:24+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-04T05:14:33+00:00\" \/>\n<meta name=\"author\" content=\"Barbra Murray\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/simon-proposes-to-macerich-but-is-the-ring-big-enough\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/simon-proposes-to-macerich-but-is-the-ring-big-enough\\\/\"},\"author\":{\"name\":\"Barbra Murray\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/d1edda962dd3af55af8a203870f9fc32\"},\"headline\":\"Simon Proposes to Macerich, But is the Ring Big Enough?\",\"datePublished\":\"2015-03-10T15:12:24+00:00\",\"dateModified\":\"2022-12-04T05:14:33+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/simon-proposes-to-macerich-but-is-the-ring-big-enough\\\/\"},\"wordCount\":648,\"commentCount\":0,\"articleSection\":[\"Investment\",\"News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/simon-proposes-to-macerich-but-is-the-ring-big-enough\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/simon-proposes-to-macerich-but-is-the-ring-big-enough\\\/\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/simon-proposes-to-macerich-but-is-the-ring-big-enough\\\/\",\"name\":\"Simon Proposes to Macerich, But is the Ring Big Enough? - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#website\"},\"datePublished\":\"2015-03-10T15:12:24+00:00\",\"dateModified\":\"2022-12-04T05:14:33+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/d1edda962dd3af55af8a203870f9fc32\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/simon-proposes-to-macerich-but-is-the-ring-big-enough\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/simon-proposes-to-macerich-but-is-the-ring-big-enough\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/simon-proposes-to-macerich-but-is-the-ring-big-enough\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Simon Proposes to Macerich, But is the Ring Big Enough?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#website\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/\",\"name\":\"Commercial Property Executive\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/d1edda962dd3af55af8a203870f9fc32\",\"name\":\"Barbra Murray\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/9a36d5070adb56de135886aa49db0452b319180ff050dbd70770fd33a3e63774?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/9a36d5070adb56de135886aa49db0452b319180ff050dbd70770fd33a3e63774?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/9a36d5070adb56de135886aa49db0452b319180ff050dbd70770fd33a3e63774?s=96&d=mm&r=g\",\"caption\":\"Barbra Murray\"},\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/author\\\/barbra-murray\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Simon Proposes to Macerich, But is the Ring Big Enough? - Commercial Property Executive","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialsearch.com\/news\/simon-proposes-to-macerich-but-is-the-ring-big-enough\/","og_locale":"en_US","og_type":"article","og_title":"Simon Proposes to Macerich, But is the Ring Big Enough?","og_description":"Simon Property Group's proposed $22 billion acquisition of The Macerich Co. is producing the usual commotion that follows a multi-billion buyout offer: criticism, congratulations, speculation and the like.","og_url":"https:\/\/www.commercialsearch.com\/news\/simon-proposes-to-macerich-but-is-the-ring-big-enough\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2015-03-10T15:12:24+00:00","article_modified_time":"2022-12-04T05:14:33+00:00","author":"Barbra Murray","twitter_card":"summary_large_image","twitter_creator":"@cpexecutive","twitter_site":"@cpexecutive","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.commercialsearch.com\/news\/simon-proposes-to-macerich-but-is-the-ring-big-enough\/#article","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/simon-proposes-to-macerich-but-is-the-ring-big-enough\/"},"author":{"name":"Barbra Murray","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/d1edda962dd3af55af8a203870f9fc32"},"headline":"Simon Proposes to Macerich, But is the Ring Big Enough?","datePublished":"2015-03-10T15:12:24+00:00","dateModified":"2022-12-04T05:14:33+00:00","mainEntityOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/simon-proposes-to-macerich-but-is-the-ring-big-enough\/"},"wordCount":648,"commentCount":0,"articleSection":["Investment","News"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.commercialsearch.com\/news\/simon-proposes-to-macerich-but-is-the-ring-big-enough\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.commercialsearch.com\/news\/simon-proposes-to-macerich-but-is-the-ring-big-enough\/","url":"https:\/\/www.commercialsearch.com\/news\/simon-proposes-to-macerich-but-is-the-ring-big-enough\/","name":"Simon Proposes to Macerich, But is the Ring Big Enough? - Commercial Property Executive","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/#website"},"datePublished":"2015-03-10T15:12:24+00:00","dateModified":"2022-12-04T05:14:33+00:00","author":{"@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/d1edda962dd3af55af8a203870f9fc32"},"breadcrumb":{"@id":"https:\/\/www.commercialsearch.com\/news\/simon-proposes-to-macerich-but-is-the-ring-big-enough\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialsearch.com\/news\/simon-proposes-to-macerich-but-is-the-ring-big-enough\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/simon-proposes-to-macerich-but-is-the-ring-big-enough\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"Simon Proposes to Macerich, But is the Ring Big Enough?"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialsearch.com\/news\/#website","url":"https:\/\/www.commercialsearch.com\/news\/","name":"Commercial Property Executive","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/d1edda962dd3af55af8a203870f9fc32","name":"Barbra Murray","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/9a36d5070adb56de135886aa49db0452b319180ff050dbd70770fd33a3e63774?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/9a36d5070adb56de135886aa49db0452b319180ff050dbd70770fd33a3e63774?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/9a36d5070adb56de135886aa49db0452b319180ff050dbd70770fd33a3e63774?s=96&d=mm&r=g","caption":"Barbra Murray"},"url":"https:\/\/www.commercialsearch.com\/news\/author\/barbra-murray\/"}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004115158","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/users\/969"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/comments?post=1004115158"}],"version-history":[{"count":1,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004115158\/revisions"}],"predecessor-version":[{"id":1004628621,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004115158\/revisions\/1004628621"}],"wp:attachment":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media?parent=1004115158"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/categories?post=1004115158"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/tags?post=1004115158"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}