The hostile takeover attempt of California-based Macerich Co., which owns the largest number of shopping malls in Arizona, intensified Tuesday in public feud with its rival.
Macerich sent a terse letter to Indianapolis-based Simon Property Group rejecting its $22 billion takeover bid, which Simon took public last week after months of failed attempts to engage Macerich in discussions.
Macerich said the offer undervalues the company and it listed trophy malls, such as Biltmore Fashion Park and Scottsdale Fashion Square, as some reasons why it believes it has a competitive advantage.
Macerich also took defensive steps to make things even harder for Simon, including a so-called “poison pill” by issuing new shares to shareholders.
Simon pushed back immediately with a letter, saying Macerich’s “scorched earth” rejection is based on a “rosy view” of its future prospects.
Macerich’s stock dipped 3.47 percent after the spat and, if a takeover doesn’t ultimately occur, it could backfire with shareholders.
