Thursday, Jan. 16, 2003 | 11:05 a.m.
INDIANAPOLIS -- Simon Property Group Inc., the world's largest mall owner, raised its hostile offer for rival Taubman Centers Inc. by 11 percent and added a partner to bolster the takeover attempt.
Simon Property increased its bid to $20 a share from $18, valuing Taubman Centers at about $4.25 billon in stock and debt. Westfield America Inc., the U.S. unit of one of Australia's biggest property owners, has joined Simon Property and will pay half the cost if Taubman Centers is purchased, said Simon Property Chief Financial Officer Stephen Sterrett.
Simon, a major player in Las Vegas, owns 249 properties, including the Forum Shops at Caesars.
The higher offer and the addition of Westfield escalates the battle between family-run Simon Property and Taubman Centers, among the first U.S. mall developers. Even with the addition of Westfield, Simon Property's bid hinges on winning a court battle challenging the Taubman family's controlling stake.
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