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Taubman Gets Shareholder Approval for Simon Property Merger

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Following the merger termination notice that Taubman Centers, Inc. (TCO - Free Report) received from Simon Property Group (SPG - Free Report) , the former held a special meeting of shareholders, asking them to approve the agreement, dated as of Feb 9, 2020.

Its shareholders have approved and adopted the previously announced merger agreement among the company, The Taubman Realty Group Limited Partnership, Simon Property and certain other parties.

In fact, 99.7% of the total shares voted were in favor of the merger agreement and transactions, which comprised 84.7% of the outstanding shares entitled to vote. Moreover, shares that were voted in favor consisted of 78.3% of the outstanding shares entitled to vote that were held by shareholders other than the Taubman family members.

With the shareholder approval, the company has satisfied the final condition precedent to closing of the merger transaction. In fact, it is prepared to close the transactions with Simon Property on Jun 30, 2020.

Further, Taubman is of the opinion that the acquirer’s merger termination notice as of Jun 10 is invalid and without merit, and that Simon is bound to the transaction in all respects. In fact, the company plans to hold Simon to its obligations per the agreement, and will pursue to challenge Simon’s termination and legal claims.

Simon Property started a lawsuit in the Michigan state court in favor of its purported termination, in response to which, Taubman filed an answer and counterclaim in the lawsuit, declining Simon’s allegations. Further, the company demands Simon Property to perform its obligations under the merger agreement, including its responsibility to complete the transactions.

Moreover, shares of this Zacks Rank #3 (Hold) company have lost 7% over the past year compared with the industry’s 23.2% decline.

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Alexander Baldwin Holdings, Inc.’s (ALEX - Free Report) Zacks Consensus Estimate for 2020 funds from operations (FFO) per share has been unchanged at 83 cents over the past month. The company currently flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

City Office REIT, Inc.’s (CIO - Free Report) FFO per share estimate for the ongoing year has been unchanged at $1.11 over the past 30 days. The company currently sports a Zacks Rank of 1.

Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

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