Taubman Aims to Retain Its $3.6 Billion Deal with Simon Property
Shopping center company Taubman Centers Inc. strikes back at Simon Property Group’s lawsuit to break their $3.6 billion deal, reported by The Wall Street Journal.
“This is a classic case of buyer’s remorse,” Taubman said in a court filing Wednesday. The mall owner has asked for an expedited hearing to prevent Simon’s from trying to “run out the clock” on the deal, which could cause “irreparable harm” to Taubman’s shareholders.
A Simon spokesman said that the pandemic has disproportionately impacted Taubman compared with other real estate companies, which enabled Simon to terminate the deal. “Nowhere in its extensive legal filing does Taubman seriously contest that it was not disproportionately impacted,” Simon’s spokesman said, and said that Simon Property will provide proof in court.
Taubman responded by saying the deal was signed on February 9, when Simon knew “full well that there was a pandemic raging in the world,” Taubman said, and added that it isn’t disproportionately affected by the pandemic as Simon mischaracterized in order to end the agreement.
Since Simon brought up the lawsuit to cancel the deal last week, stokes of both shopping mall companies have gone down about 17 percent.
The deal would have combined the two major mall owners in the industry, at a time when traditional stores are struggling against competitions from the rising trend of e-commerce.