Simon Property Group launches $16B hostile bid for Macerich

FILE - In this Feb. 16, 2010 file photo, a woman and a young girl stand at a fountain at the Stanford Shopping Center, a Simon Property Group property, in Palo Alto, Calif. Simon Property Group on Monday, March 9, 2015 said it is launching a hostile bid worth about $16 billion for Macerich Co., after saying the rival mall operator refused to discuss a combination. (AP Photo/Paul Sakuma, File) FILE - In this Feb. 16, 2010 file photo, a woman and a young girl stand at a fountain at the Stanford Shopping Center, a Simon Property Group property, in Palo Alto, Calif. Simon Property Group on Monday, March 9, 2015 said it is launching a hostile bid worth about $16 billion for Macerich Co., after saying the rival mall operator refused to discuss a combination. (AP Photo/Paul Sakuma, File)

By Associated Press March 9, 2015 2 min read

INDIANAPOLIS (AP) – Simon Property Group has launched a hostile bid worth about $16 billion for Macerich Co. after saying the rival mall operator refused to discuss a combination. A deal would combine two of the largest mall operators in the United States.

Simon said Monday that it was offering $91 per share in cash and stock for each share of Macerich. It said that represents a premium of 30 percent to the closing price of the mall operator’s shares on Nov. 18, before Simon disclosed that it had accumulated a nearly 4 percent stake in Macerich.

The offer is valued at about $22.4 billion, counting Macerich’s debt.

Indianapolis-based Simon said it is confident that Macerich shareholders will accept its proposal.

Representatives of Santa Monica, California-based Macerich did not immediately return calls from The Associated Press seeking comment.