US suitor gives up on pursuit of retail group

AMERICAN investment firm Simon Property yesterday gave up its £2.9 billion bid to take over Capital Shopping Centres (CSC), paving the way for the UK's biggest shopping centre owner to buy Manchester's Trafford Centre.

Simon, which owns a 5.1 per cent stake in CSC, said it still opposed the British firm's plan to pay for Trafford Centre with new shares, which would dilute its stake, but added it was unable make an offer because CSC had not provide the due diligence information it had requested.

Analysts had predicted Simon would give up rather than raise its 425p-a-share offer to buy CSC, after the UK firm on Friday cut the price it would pay for the Trafford Centre to boost its a defence against Simon's approach.

CSC shareholders are due to vote on 26 January on the Trafford Centre transaction, which would give the shopping centre's owner - Peel Group, which in turn is owned by British billionaire John Whittaker - a 23.2 per cent stake in CSC.