Since the February announcement, the merger has taken on the dimensions of a soap opera. With the coronavirus pandemic and its devastating effects on retail trade, Simon tried to close the agreement completely. In exchange, Taubman sued his purchaser to prevent this. The complaint has been resolved, the two companies said. Under the original agreement reached in February, Indianapolis-based Simon has acquired an 80% stake in Michigan-based Taubman for $3.6 billion. In accordance with the amended agreement, Taubman will not pay or pay any dividends on its common stock until March 1, 2021. After that date, the declaration and payment of dividends on its common shares are subject to certain restrictions and conditions. The announcement was made in a joint statement. Taubman, which operates high-end malls across the country, responded by saying simon would sue and force the company to complete the merger. In June, Simon terminated the agreement, saying Taubman had not properly adjusted its operating costs and investments in response to COVID-19.
The transaction is expected to be completed in late 2020 or early 2021 under revised conditions. BLOOMFIELD HILLS, Mich.–(BUSINESS WIRE)-Taubman Centers, Inc (NYSE: TCO) (the «Company») announced that its shareholders today approved at a special meeting of shareholders the already announced merger agreement (the «merger agreement») of February 9, 2020 under the company, taubman Realty Limited Group (with the company, «Taubman»), Simon`s Ownership Group (NYSE: SPG) and certain parties. and the transactions in the merger agreement (the «operations»). On Sunday, Simon Property Group and Taubman Centers announced that they had reached an agreement to amend the terms of a $3.6 billion merger agreement $US reached earlier this year, including a new purchase price of $US 43.00 per share in cash and other provisions. Both companies have been dancing around a market for years. Simon first attempted a hostile takeover of Taubman in 2003. They finally agreed in February that the old companies had taken control of the latter, but when the malls closed and retail revenues collapsed because of the pandemic, Simon tried to pull out of the market, saying that Taubman had not sufficiently mitigated the effects of the pandemic. The amended merger agreement also provides for Simon to acquire an 80% interest in the Taubman Realty Group «FIT».