Takeover Panel issues deadline for US bid for shopping giant CSC

SIMON Property, the biggest shopping centre owner in the US, has been given a deadline by the UK Takeover Panel to decide whether it wants to make a bid for Braehead-owner Capital Shopping Centres (CSC).

The panel yesterday said Simon has to make its intentions clear by 5pm on 12 January and added that both parties have accepted the ruling.

On Wednesday, Indianapolis-based Simon had made a preliminary offer of 425p a share for CSC, valuing it at 2.9 billion. The US firm - which owns 373 properties in North America, Europe and Asia - said the offer was at a 16 per cent premium to the price of shares CSC plans to issue to buy Manchester's Trafford Centre. The offer was rejected by the UK target which said it "very substantially undervalues the company".

Simon Property, which owns a 5.1 per cent stake in CSC, had said its own board supported its indicative offer and it expected CSC to provide the due diligence information to help it make the offer a formal one.

Responding to the Takeover Panel ruling, CSC's board said the development "will bring to an end the uncertainty created by Simon Property's attempts to frustrate the Trafford Centre acquisition and will ensure that CSC's shareholders will have clarity over the nature of any proposal which Simon may put forward".

Simon Property had urged CSC shareholders to oppose the Trafford Centre deal - which involves John Whittaker's Peel Group - at a meeting scheduled for 20 December which has been adjourned until 26 January.

After the market closed yesterday the US firm issued a statement urging CSC shareholders to demand that the board provide due diligence information "immediately" to assist Simon Property in making a firm offer prior to the panel's deadline.

"We urge the board of CSC to desist from its attempts to deny shareholders the chance to make a fully informed decision," it added.