Simon Property says scrapping CSC bid

11th January 2011, Comments 0 comments

Simon Property Group, the largest public US real estate company, said Tuesday that it has abandoned its informal bid to buy Britain's Capital Shopping Centres.

SPG announced in a statement that it would not make a firm offer because the takeover target had failed to open its books for the due diligence process.

Simon Property had launched an informal takeover offer last month that valued CSC at 425 pence per share or £2.9 billion (3.4 billion euros, $4.6 billion).

"Despite numerous overtures from Simon and in full knowledge that Simon, given this due diligence precondition, is not able to announce a firm offer without it, the CSC board has refused to share any due diligence information with Simon," the group said in a statement.

"Simon therefore has no alternative other than to announce that it does not intend to make an offer for the entire share capital of CSC."

CSC's portfolio of properties includes Lakeside shopping centre at Thurrock in southeastern England and the MetroCentre complex at Gateshead in the north.

© 2011 AFP

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