Macerich Co.(MAC)- NYSE
  • Apr. 16, 2015, 2:52 AM
    • More investor discontent is being heard over Macerich's (NYSE:MAC) recent rejection of Simon Property Group's (NYSE:SPG) $16.8B takeover proposal.
    • Macerich's fourth largest shareholder, Cohen & Steers (NYSE:CNS), asked the shopping mall company on Wednesday to produce a plan that would deliver as much value as the takeover offer by Simon.
    • "At least give us a plan of how Macerich will exceed Simon's offer over time," Executive Chairman Martin Cohen told Reuters on the sidelines of the NYU REIT Symposium.
    • Previously: What's next for Simon after Macerich rejection (Apr. 01 2015)
    • Previously: Macerich board rejects Simon offer (Apr. 01 2015)
    | Apr. 16, 2015, 2:52 AM | 1 Comment
  • Apr. 1, 2015, 5:43 AM
    • Simon Property Group (NYSE:SPG) has withdrawn its $16.8B proposal to acquire Macerich (NYSE:MAC) after the smaller mall owner rejected the sweetened takeover offer as too low.
    • "The board unanimously concluded that your proposal (of $95.50-a-share) continues to substantially undervalue Macerich," CEO Arthur Coppola said in a letter.
    • Macerich took steps to thwart a hostile takeover following Simon's first public offer by adopting a poison pill on March 17.
    • MAC -1% premarket
    • Previously: CNBC: Macerich likely to reject Simon bid (Mar. 27 2015)
    | Apr. 1, 2015, 5:43 AM | 2 Comments
  • Mar. 27, 2015, 10:03 AM
    • It's not a major surprise, but the Macerich (MAC -1.2%) board looks set to reject Simon Property Group's (SPG +0.3%) best and final buyout offer of of $95.50 per share, reports David Faber.
    • Investors have prepped for this: Macerich has been trading well south of $95.50 ever since the Simon ultimatum. It's currently at $85.93. Macerich was a $70 stock prior to Simon getting involved.
    • Previously: Investors bet Simon Property will walk away from Macerich (March 20)
    • Previously: Simon Property sweetens Macerich offer (March 20)
    | Mar. 27, 2015, 10:03 AM
  • Mar. 20, 2015, 11:15 AM
    • "The bump is pretty underwhelming," says Susquehanna's King She, commenting on Simon Property Group's (SPG +1.6%) boost of its offer to buy Macerich (MAC -4.8%) to $95.50 per share from $91. The April 1 deadline from Simon doesn't bode well for the prospects of a deal:  “You normally like to see a hostile buyer digging in their heels for the long haul.”
    • She's expectation is Macerich will reject the offer within a week and Simon will walk away. Investors agree, taking Macerich down to $87.85 per share in wake of the "final" offer.
    • Macerich confirms its receipt of the new bid, and promises to have a look.
    • Previously: Simon Property sweetens Macerich offer (March 20)
    | Mar. 20, 2015, 11:15 AM
  • Mar. 20, 2015, 7:57 AM
    • Calling this its best and final offer, Simon Property Group (NYSE:SPG) bids $95.50 per share - 50% cash, 50% stock - for Macerich (NYSE:MAC). Terms of the previous offer were $91 in cash and stock. The total value of the deal is about $23.2B, including assumption of about $6.4B in debt.
    • Macerich is tumbling on the news as investors bet on a rejection, and then David Simon picking up his ball and going home. Macerich was trading hands at about $70 per share before Simon first disclosed a stake in the company last November. Simon is giving Macerich until April 1 to talk turkey.
    • New presentation from Simon Property
    • MAC -9.9% to $84.30, SPG -0.6% premarket
    | Mar. 20, 2015, 7:57 AM
  • Mar. 18, 2015, 8:01 AM
    • Calling the possibility of a near-term sale of Macerich (NYSE:MAC) reduced after the company staggered the board and adopted a poison pill, UBS cuts the stock to Sell from Neutral, and lowers the price target to $84 from $90.
    • The team puts just a 20% probability of a sale at $100 per share, and says Simon Property's (NYSE:SPG) $91 offer was "not unreasonable," and shouldn't be expected to go much higher.
    • Cowen reiterates its Outperform, believing Simon could go up to $95 if Macerich would just play a little nicer.
    • Previously: Game on: Simon Property responds angrily to Macerich rejection (March 17)
    • Previously: Macerich rejects Simon offer, adopts poison pill (March 17)
    | Mar. 18, 2015, 8:01 AM
  • Mar. 17, 2015, 12:15 PM
    • "The Macerich (MAC -2.8%)board has sent shareholders a clear message that it will do everything in its power to block a value-creating transaction and prevent them from having a voice in matters critical to the value of their investment," says SImon Property (SPG -0.9%) chief David Simon, noting it was only four months ago when Macerich issued 10.9% of its shares for just $71 each (Simon has offered $91).
    • "Shareholders should closely examine Macerich's history of delivering on its forecasts, which pales in comparison to Simon's long track record of delivering industry-leading results that have outpaced Macerich in virtually every operating and financial category."
    • Simon says Macerich's decision to stagger its board without owner approval - poor corporate governance in normal circumstances - is particularly egregious given Simon's offer to nominate candidates constituting only a minority of the board.
    • Previously: Macerich rejects Simon offer, adopts poison pill (March 17)
    | Mar. 17, 2015, 12:15 PM | 1 Comment
  • Mar. 17, 2015, 8:27 AM
    • Unsurprisingly, the Macerich (NYSE:MAC) board rejects Simon Property's (NYSE:SPG) $91 per share offer for the company, noting it significantly undervalues the company. Macerich also takes serious issue with Simon's claims of superior profitability metrics, and notes the possible antirust concerns raised by Simon's partnership with General Growth Properties (NYSE:GGP) - as part of its proposal, Simon has agreed to sell certain Macerich properties to GGP.
    • The poison pill goes into effect should any person or group acquire more than a 10% stake.
    • Previously: Simon Property presentation on Macerich: We can do a better job (March 10)
    • Previously: $91 per share only the opening gambit for Macerich (March 9)
    • MAC -0.25% premarket
    | Mar. 17, 2015, 8:27 AM
  • Mar. 10, 2015, 3:38 PM
    • One point of contention between the two parties might be Simon's (SPG +0.3%) belief that its $91 per share offer represents a 4% cap rate on Macerich's (MAC -0.2%) assets. At least one analyst estimates it to be more like a 4.8% cap. Those 80 basis points is the difference between a valuation of $91 and one of $99.
    • Simon Property's Macerich presenation slides
    • Simon trumpets its "best-in-class" management and notes it has stronger comparable long-term NOI growth, higher sales per square foot, higher small-shop occupancy, lower overhead costs as a percent of revenue, and faster compounded growth of FFO per share and the dividend.
    • Also noted is Simon's "fortress balance sheet, with lower ratios for net debt + preferred as a percent of tangible equity value and EBITDA.
    • Previously: Simon Property makes its move on Macerich (March 9)
    | Mar. 10, 2015, 3:38 PM
  • Mar. 9, 2015, 2:44 PM
    • "We think $91 is just an opening bid/salvo in what could be a long takeover battle," writes Stifel's Nathan Isbee. "Macerich (MAC +6.4%) could hold out for at least a high $90s bid."
    • Simon Property's (SPG +0.1%) $91 bid translates into a 4.8% cap rate, estimates BMO's Paul Adornato. Assuming Simon could afford a 4.5% cap rate, it would work out to $99 per share, or $115 at a 4% cap rate. Too pricey? Top-quality malls are going for even higher valuations, such as General Growth Properties' JV deal for the Ala Moana Center in Honolulu at about a 3-cap.
    • Macerich will no doubt look for other suitors, perhaps even General Growth Properties (GGP +1.7%), even though Simon Property already made GGP essentially its partner in the offer by agreeing to sell some Macerich assets to the company. Private-equity firms have also been known to have interest in REITs.
    • Macerich is currently trading at $92.25 as investors bet a deal will get done, but at something north of $91.
    • Previously: Macerich confirms receipt of Simon offer, reminds of track record and plan (March 9)
    • Previously: Simon Property makes its move on Macerich (March 9)
    | Mar. 9, 2015, 2:44 PM
  • Mar. 9, 2015, 9:12 AM
    • The proposed offer is for $91 per share in cash and stock, valuing the total deal at about $22.4B, including the assumption of Macerich's (NYSE:MAC) $6.4B of debt. Macerich owners would receive consideration in the form of 50% cash and 50% Simon Property Group (NYSE:SPG) stock.
    • Making its case (so far Macerich hasn't been interested in engaging with Simon), SPG notes the offer is a 30% premium to MAC's price in November before Simon disclosed a 3.6% stake in the company. It's also a 28% premium to the price paid by the Ontario Teachers' Pension Plan for a 10.9% stake that same month.
    • Alongside this proposal, Simon has agreed with General Growth Properties (NYSE:GGP) to sell certain Macerich assets to that company once the acquisition closes.
    • MAC +5.9% to $91.85 premarket; SPG +0.8%
    • Previously: Simon Property courts Macerich (March 5)
    | Mar. 9, 2015, 9:12 AM
  • Mar. 5, 2015, 4:36 AM
    • Sources say Simon Property Group (NYSE:SPG) has made overtures for rival Macerich (NYSE:MAC) over the past few weeks, in an apparent bid to combine two of the largest U.S. shopping-mall owners.
    • It isn’t clear how receptive the $13B Macerich is to a deal; sources say it has been discussing a potential defense with its advisers. REITs like Macerich can be difficult to takeover due to state laws that protect them from unsolicited bids.
    • In November, Simon disclosed a 3.6% stake in Macerich, seen by many as the first step in a takeover attempt. MAC shares have risen to new multi-year highs since then, and were +5.25% late last night.
    • Previously: Simon Property discloses stake in Macerich; wants more (Nov. 19, 2014)
    | Mar. 5, 2015, 4:36 AM | 1 Comment
Company Description
Macerich Co. operates as a real estate investment trust, which engages in the acquisition, ownership, development, redevelopment, management and leasing of regional and community shopping centers located throughout the United States. It conducts all of its operations through the operating... More
Sector: Financial
Industry: REIT - Retail
Country: United States