The row between Lakeside owner Capital Shopping Centres and a major US shareholder has escalated over a £1.6 billion bid for one of Britain’s biggest malls.
US group Simon Property accused Capital of overpaying for the Trafford Centre in Manchester and said the deal would destroy the value of the company.
It emerged last month that Simon Property, which owns a 5% stake in Capital, wanted the Trafford acquisition to be put on hold while it looked at a possible takeover bid for Capital.
Capital has so far given its pursuer short-shrift in the absence of any firm offer and said it would proceed with the Trafford acquisition.
Simon said it would drop its takeover plans unless it was allowed to go through Capital’s books and confirmed it would vote against the Trafford move.
In an open letter, Simon chief executive and chairman David Simon said it was “disturbed and disappointed” by Capital’s bid for the Trafford Centre.
He added his firm had not received information requested from Capital, which is required for it to prepare its approach for the FTSE 100 firm.
Capital shares fell 4% following publication of the letter.
Capital responded by saying it was “not appropriate” to provide Simon Property with due diligence information in the absence of an indicative offer and reiterated plans to plough on with its Trafford deal.
The acquisition would cement Capital’s position as the leading UK shopping centre group with 14 centres, including four of the country’s top six out-of-town destinations.
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