Mall landlord giant Simon Property Group has ratcheted up its rhetoric in its apparently hostile $16-billion takeover attempt of rival
Simon on Monday went over the heads of Macerich managers with a direct appeal to shareholders to accept an offer of $91 a share in cash and Simon stock.
On Tuesday, Simon posted a presentation on its website intended to convince Macerich investors to accept Simon's proposal. It highlighted the 7% jump in the value of Macerich stock Monday as Simon's takeover attempt made news.
"We are encouraged by the market's positive response to the strong strategic logic underlying a combination of Simon and Macerich," Simon Chief Executive David Simon said in a statement. "The presentation we have released today demonstrates the compelling nature of our offer based on a wide range of financial and operations metrics."
Indianapolis-based Simon outperforms Macerich "in virtually every key operating and financial category" including shareholder returns, he said.
Among the markers cited were sales of $619 per square foot in Simon malls last quarter compared to $587 in Macerich centers.
Net operating income growth from 2006 through 2014 was 3.8% at Simon compared to 2.7% at Macerich. Total overhead costs as a percentage of total revenue last year were 3.5% at Simon and 8.7% at Macerich.
Macerich said Monday it was reviewing Simon's offer and urged its shareholders to take no action. On Tuesday, Simon egged them on.
"Macerich shareholders interested in a significant cash premium and the upside potential of an investment in Simon should communicate their views," David Simon said.