|Bid||0.00 x 800|
|Ask||0.00 x 800|
|Day's Range||37.24 - 38.50|
|52 Week Range||26.24 - 53.40|
|Beta (5Y Monthly)||-0.07|
|PE Ratio (TTM)||11.00|
|Earnings Date||Jul 23, 2020 - Jul 27, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Mar 13, 2020|
|1y Target Est||48.69|
As the restrictions related to the pandemic ease and the economy reopens, Taubman (TCO) is witnessing a rebound in business, with operations restarting in all of its shopping centers.
Taubman Centers, Inc. (NYSE: TCO) today announced that 100 percent of its operating properties in the U.S. and Asia, have reopened. Most U.S. centers were temporarily closed on March 19 in response to the COVID-19 pandemic and have reopened gradually using enhanced safety protocols, in compliance with all local, state and federal laws.
Nick Shields, Senior Analyst at Third Bridge, joins The First trade to discuss the states of malls as some reopen amid continually rising cases of coronavirus.
Taubman Centers' (TCO) shareholders approve and adopt the merger agreement with Simon Property. The approval satisfies the final condition precedent to closing of the merger transaction.
Taubman Centers said Thursday its shareholders approved its acquisition by Simon Property Group , despite Simon's recent move to terminate the $3.6 billion agreement. Shares of Taubman, Bloomfield Hills, Mich., at last check were off 0.6% at $37.90, while Indianapolis-based Simon Property was down 2.3% to $63.63. Earlier this month, Simon Property Group, the biggest U.S. shopping mall operator, said it was scrubbing its offer to acquire Taubman, charging it had failed to take "essential steps" to lessen the impact of the coronavirus pandemic.
Taubman Centers, Inc. (NYSE: TCO) (the "Company") announced that, at a special meeting of shareholders, its shareholders today approved and adopted the previously announced merger agreement (the "Merger Agreement"), dated as of February 9, 2020, among the Company, The Taubman Realty Group Limited Partnership (together with the Company, "Taubman"), Simon Property Group, Inc. (NYSE: SPG) ("Simon") and certain other parties, and the transactions contemplated by the Merger Agreement (the "Transactions").
Macerich (MAC) and Taubman assets likely to gain by serving as mall-based distribution centers as these help in faster delivery of products for being situated closer to the customers of the retailers.
Mall owner Taubman Centers, Inc. (NYSE: TCO) is taking legal action and says Simon Property Group Inc (NYSE: SPG) has no right to terminate the merger agreement between the companies. What Happened: Simon agreed to acquire Taubman for $3.6 billion, or $52.50 per share, in February. The larger mall owner is looking to break the deal due to the COVID-19 pandemic.On Wednesday, Taubman filed a counterclaim and said Simon is having "buyer's remorse," CNBC's David Faber reported on "Squawk on the Street.""The Simon Parties agreed to a series of merger transactions with the Taubman Parties ... on February 9, 2020, at a time when the parties and the world were well-aware of the risks of the novel coronavirus pandemic," Faber quoted the legal papers as stating.Taubman further argues that Simon Properties agreed to accept risks related to the pandemic.Why It's Important: Simon's original legal complaint includes a "weak" argument, but that doesn't mean it ultimately won't succeed in the legal battle, Faber said.A Simon spokesperson commented on Taubman's legal complaint, Faber said."The Merger Agreement explicitly provides that a pandemic that has disproportionately affected Taubman compared to others in the retail real estate industry gives Simon the right to terminate the Agreement," the spokesperson said. "Nowhere in its extensive legal filing does Taubman seriously contest that it was not disproportionately impacted."What's Next: Under a worst-case scenario, Simon would have to proceed with its prior plans to acquire Taubman, Faber said.Taubman investors appear to be betting on an acquisition, he said, or the stock would be "a lot lower" and "not be anywhere" near $37 per share.Taubman shares were up 0.13% at $37.43 at the time of publication, while Simon Property Group shares were higher by 0.36% at $71.93. Related Links:Why Taubman Centers Stock Is Trading Lower TodayBofA Downgrades Simon Property Amid Unprecedented Challenges In RetailSee more from Benzinga * Simon Property To Gap: See You In Court For Not Paying Rent * Cramer Says The Latest Rotation Trend Is Driven By 'Ravenous Consumers'(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Piper Sandler says the market is overlooking the “distinct possibility” the two mall operators reach an agreement involving a breakup fee.
To avoid buyer's remorse, the purchaser will often try and find a way out of the deal. On Feb. 9, 2020, Simon Property Group (NYSE: SPG) and Taubman Centers (NYSE: TCO) announced a merger in which Simon would purchase 80% of the common shares of Taubman for $52.50 per share in cash, or a 51% premium to Taubman's closing price on Feb. 7. Total consideration for the transaction was $3.6 billion, and the Taubman family would retain a 20% minority interest.
Simon Property (SPG) files a lawsuit against Taubman, alleging that the latter has suffered a material adverse event and has breached covenants of the merger agreement.
With COVID-19 having crushed brick-and-mortar retail, mall REIT Simon Property Group is trying to wriggle out of a multibillion-dollar acquisition.
(Bloomberg) -- Simon Property Group Inc. is terminating its $3.6 billion bid to buy Taubman Centers Inc., arguing that its rival mall owner has breached the merger agreement by not taking steps to mitigate the fallout from the coronavirus pandemic.Simon said in a statement on Wednesday it has “exercised its contractual rights” to terminate the deal, which was announced in February before the pandemic battered malls. The company said it was asking a court to declare that Taubman has suffered a “material adverse event” and “breached the covenants in the merger agreement.”Taubman’s shares plunged more than 40% after the statement was released, before paring the losses. The stock finished Wednesday down about 20% at $36.17, the biggest single-day drop since December 2008.Taubman didn’t immediately respond to a request for comment.Simon also dipped on Wednesday, sliding 4% to $83.01. The stock had rallied recently on hopes for a faster than expected economic recovery.Simon also dipped on Wednesday, dropping as much as 9.8% to $78. Its shares had rallied recently on hopes for a faster than expected economic recovery.Taubman’s shares have been trading below the proposed deal price of $52.50 for months, raising speculation that the deal was in trouble or that Simon would seek to lower its bidLower Price?The move by Simon on Wednesday could be a negotiating tactic, according to Lindsay Dutch, an analyst at Bloomberg Intelligence.Taubman could try to force Simon to close the original deal, but it might make more sense to work something out at a lower price, according to James Sullivan, an analyst at BTIG.“The downside in Taubman shares might be as low as in the 20s if the deal didn’t close,” Sullivan said. “They have every incentive to negotiate a price cut and the question just becomes how much is appropriate.”Simon and Taubman are two of the largest U.S. mall owners, and the deal was seen as a way for Simon to bulk up in its battle to retain shoppers increasingly drawn to the convenience of e-commerce.Simon’s properties include Roosevelt Field, outside New York City, while Taubman owns Beverly Center in Los Angeles and Dolphin Mall in Miami.Tough ProspectsProspects for bricks-and-mortar retail have changed dramatically since the deal was announced. Stay-at-home orders to curb the spread of Covid-19 have shuttered stores, pushing more consumers online.Landlords, already pressured by declining foot traffic and retailer bankruptcies, may face a wave of new vacancies as the pandemic forces more tenants out of business.While Americans stuck inside for months have shown a willingness to return to stores, there are major challenges ahead for enclosed malls.Simon argued in the statement that Taubman had failed to make “essential cuts” in operating expenses and capital expenditures and that the company’s properties have been hit particularly hard by the outbreak.“Taubman’s significant proportion of enclosed retail properties located in densely populated major metropolitan areas, dependence on both domestic and international tourism at many of its properties, and its focus on high-end shopping have combined to impact Taubman’s business disproportionately due to the Covid-19 pandemic when compared to the rest of the retail real estate industry,” Simon said.(Updates shares. A previous version of this story removed misattributed quote in 10th paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- Malls have been falling out of favor with Americans for years. But the calculus surrounding which have the best chances of surviving and which are destined for decline was flipped on its head by the coronavirus pandemic. That helps explain the news on Wednesday that mall giant Simon Property Group Inc. wants to call off its planned purchase of Taubman Centers Inc.A portfolio of higher-end malls in urban areas that cater to domestic and international tourism was one reason Simon agreed to pay a 70% premium for rival Taubman in February. Those same outposts are now a liability as the pandemic turns consumers off from crowded indoor venues and grinds travel to a halt. And that may give Simon the argument it needs to successfully walk away from the merger. Simon said Wednesday it’s seeking to terminate the $3.6 billion deal, arguing that Taubman had experienced a “material adverse event” amid the pandemic and had breached its obligations under the merger agreement by failing to make “essential” cuts in expenses to deal with the fallout. While the agreement stipulates that a pandemic doesn’t on its own give Simon the grounds to walk away, there’s an exception if the company can prove Taubman has experienced a “disproportionate adverse effect” relative to others in the industry. That’s where those higher-end, urban malls come into play. While the pandemic is far from over, there appears to be a growing consensus among epidemiologists that outdoor activities are less risky than indoor ones. The owners of the largest open-air strip centers collected 50% to 65% or more of rent due in April, compared to just 10% to 30% for mall and outlet owners, Bloomberg Intelligence analyst Lindsay Dutch observed in a recent note. It also helps that many of those strip centers are anchored by grocery stores or other outlets that were allowed to stay open through the pandemic because they sell essential items. CNBC reported that Taubman intends to contest Simon's termination of the deal and legal claims and will move ahead with a shareholder vote on June 25.Is this short-sighted? Maybe. The idea that we are forever destined to favor strip malls in suburban areas over luxury malls in cities strikes me as debatable. Indeed, Simon shares fell nearly 10% at one point on Wednesday and were still down about 3% in the early afternoon, suggesting shareholders believe something is being lost here. As my colleague Tara Lachapelle wrote in February when the deal was first announced, scale of operations and breadth of balance sheet should be an asset in mall owners’ quest for survival.But it’s still the right move for Simon to get out of the Taubman combination if it can. The all-cash deal and assumption of Taubman’s debt would have significantly inflated Simon’s leverage at the worst possible time, given the company’s own struggles to extract rent from shuttered retailers. Simon earlier this month sued Gap Inc., claiming the company failed to pay $65.9 million in rent for March through June. Including the coronavirus hit to the retail environment, the deal may have boosted Simon’s debt to 7.5 times its Ebitda, SunTrust Robinson Humphrey analyst Ki Bin Kim estimated in a report on Wednesday.Simon’s argument for getting out of the deal is logical “in the court of common sense,” Bin Kim wrote. But in the court of law, “we don’t know.” The second half of Simon’s argument — that Taubman has breached the covenants of the merger agreement by failing to make significant cost-cuts — is arguably trickier. While Simon has said it’s suspended or eliminated more than $1 billion of capital development projects, cut executive salaries and implemented temporary furloughs, Taubman has been more measured, announcing the deferral of as much as $110 million of expenditures. But aggressive job cuts and cost-control measures by Taubman could have given Simon more ground to argue the business was in a disproportionately dire situation, Bin Kim writes. “It could have been one of those things that `you’re damned if you do, and you’re damned if you don’t,’” he said. That should be something of a motto for a mall industry that feels perpetually stuck on the wrong side of trends. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Simon Property Group (NYSE: SPG) will no longer pursue its $3.6 billion acquisition of fellow mall operator Taubman Centers (NYSE: TCO). It said the coronavirus pandemic had too great of an impact on Taubman, and that Taubman failed to take the necessary steps to protect its business during the crisis. The acquisition was announced in February and Simon had said the deal would be at least 3% immediately accretive to its funds from operations per share on an annualized basis.
Taubman Centers Inc. responded Wednesday to the notice from Simon Property Group Inc. that the real estate investment trusts' merger was being terminated by saying it was "invalid and without merit," and will seek monetary damages. Taubman's stock plunged as much as 41% intraday before paring losses to be down 18.6% in afternoon trading, after Simon said it was terminating the $3.6 billion deal to buy Taubman that was announced in February because the COVID-19 pandemic has had a "material and disproportionate effect" on Taubman. Taubman said it believes Simon continues to be bound to the deal "in all respects," and will "vigorously contest" Simon's claims. "Taubman intends to pursue its remedies to enforce its contractual rights under the Merger Agreement, including, among other things, the right to specific performance and the right to monetary damages, including damages based on the deal price," Taubman said in a statement. The company said the special meeting of shareholders to vote on the merger is still scheduled for June 25. Taubman's stock has shed 28.2% over the past three months and Simon's shares have lost 24.6%. Meanwhile, the SPDR Real Estate Select Sector ETF , of which Simon is a component, has slipped 1.9% the past three months and the S&P 500 has gained 11.0%.
Simon Property Group , the biggest U.S. shopping mall operator, said Wednesday it was scrubbing its $3.6 billion offer to acquire Taubman Centers , charging its rival had failed to take "essential steps" to lessen the impact of the coronavirus pandemic. Shares of Indianapolis-based Simon Property were falling 2.9% to $83.96, while the Bloomfield Hills, Michigan-based Taubman shares were tumbling 18.7% to $36.78. Simon Property listed its reasons for canceling the agreement in a complaint filed in the Sixth Judicial Circuit of Oakland County in Michigan against Taubman Centers, which agreed to be acquired in February after holding intermittent talks with Simon since late last year.
Taubman Centers, Inc. (NYSE: TCO) ("Taubman") confirmed that Simon Property Group, Inc. ("Simon") has today delivered a notice purporting to terminate the previously announced Agreement and Plan of Merger among Simon, Taubman, The Taubman Realty Group Limited Partnership ("TRG") and other parties.
Shares of Taubman Centers, Inc. (NYSE: TCO) plummeted after a merger deal between the company and Simon Property Group Inc. (NYSE: SPG), the country's largest mall owner, was terminated. Taubman's stock fell by as much as 41% in the morning. Simon Property said in a press release this morning that it had terminated its Feb. 9 merger agreement, adding that Taubman had suffered a "material adverse event" because of the coronavirus pandemic.
Shares of Simon Property Group (NYSE: SPG), the biggest mall owner in the U.S., were falling today after the company said that it is terminating a $3.6 billion deal to merge with Taubman Centers (NYSE: TCO). Simon's stock was down by as much as 9.9% by midday. The coronavirus pandemic has dealt a serious blow to the U.S. retail industry, and Simon Property said that Taubman has suffered a "material adverse event" because of it.
Simon Property Group Inc, the biggest U.S. mall operator, said on Wednesday it would terminate its $3.6 billion deal to buy Taubman Centers Inc due to the damage done by the coronavirus pandemic to its rival's business. Simon Property said that COVID-19 caused an adverse impact on Taubman's business, leading it to breach the covenants in the merger agreement.
Shares of Taubman Centers Inc. plummeted 29.5% in very active morning trading Wednesday, after fellow real estate investment trust Simon Property Group Inc. said it has terminated the deal to buy Taubman. Trading volume in Taubman's stock swelled to 6.7 million shares, compared with the full-day average of 1.9 million shares. Meanwhile, Simon's stock fell 5.6%. Simon said it has filed a court action requesting a declaration that Taubman has suffered a "material adverse event" under the merger agreement, as the COVID-19 pandemic has had a "uniquely material and disproportionate effect" on Taubman compared with other REITs. Simon also claims that Taubman has "breached" its obligations by failing to take steps to mitigate the impact of the pandemic, by not making needed cuts to expenses and expenditures. On Feb. 10, the companies announced a deal in which Simon would buy Taubman in a deal valued at about $3.6 billion. Taubman's stock has still gained 2.6% year to date and Simon shares have tumbled 45.3%, while the SPDR Real Estate Select Sector ETF has slipped 4.3% and the S&P 500 has eased 0.9%.
Simon Property Group, Inc. (NYSE: SPG) ("Simon") today announced that it has exercised its contractual rights to terminate its February 9, 2020 merger agreement (the "Merger Agreement") with Taubman Centers, Inc. (NYSE: TCO). Simon also filed an action today in the Circuit Court for the 6th Judicial Circuit of Oakland County, Michigan against Taubman Centers, Inc. and The Taubman Realty Group Limited Partnership (collectively, "Taubman") requesting a declaration that Taubman has suffered a Material Adverse Event ("MAE") under the Merger Agreement and has breached the covenants in the Merger Agreement governing the operation of Taubman's business.
BALA CYNWYD, PA / ACCESSWIRE / June 9, 2020 / Brodsky & Smith, LLC reminds investors of investigations it is conducting regarding the following companies for possible breaches of fiduciary duty and other ...