Dive Brief:
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Mall development and operating company Macerich Monday said it has settled with activist investor Jonathan Litt, who had objected to the company’s rejection of a takeover bid from rival Simon Property Group Inc.
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Litt had also nominated four directors to the company’s board last month, and Macerich had disputed his capacity to do so.
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In March Macerich rejected a $16 billion hostile bid from Indianapolis-based Simon Property Group Inc., the country’s largest mall company. Macerich then said the bid undervalued the company, and also adopted a “poison pill” to prevent a takeover.
Dive Insight:
This settlement agreement reached by Macerich and an investor group led by Litt takes the wind out of the sails of any potential proxy fight, bringing the status quo more or less back to the landscape of mall development in the U.S.
At least for the time being. Things are changing when it comes to the American mall. Factors like design, retail mix, and delivery are causing upheaval, something the boards of Simon and Macerich will continue to have to address.
