Simon Property Group Terminates Taubman Agreement

In its first-quarter earnings note, Taubman said the pandemic and the real estate shutdown have had a significant impact on sales. At the end of March, the company used US$350 million of its $US 1.1 billion credit line, as a precautionary measure, to increase liquidity and maintain financial flexibility, resulting in outstanding assets of $US 970 million. In a statement Wednesday afternoon, Taubman described Simon`s attempt to denounce the deal as “unfounded,” adding that Simon was still bound by the deal. view original content for multimedia INDIANAPOLIS, June 10, 2020 /PRNewswire/ — Simon Property Group, Inc. (NYSE: SPG) (“Simon”) announced today that it has announced its contractual rights to terminate its 9-a-practice merger agreement with Taubman Centers, Inc. (NYSE: TCO) on February 2, 2020 (the Merger Agreement). Simon also today filed a lawsuit against Taubman Centers, Inc. and The Taubman Realty Group Limited Partnership (jointly “Taubman”) in court for the 6th Circuit of Justice in Oakland County, Michigan, and requested that Taubman suffered a material adverse event (“MAF”) as part of the merger agreement and violated the agreements entered into in the merger agreement, which govern the operation of Taubman`s business. The Indiana-based company filed a lawsuit in the 6th Judicial Circuit Court, in Oakland County, Michigan, for saying Taubman violated the merger agreement regarding its business as a result of the coronavirus pandemic. Simon asks the court to confirm the termination of the agreement. As described in the complaint filed this morning, the termination of Simon`s merger agreement is based on two distinct and independent reasons. First, the COVID-19 pandemic has had a material and disproportionate effect on Taubman compared to other participants in the retail real estate sector.

Second, as a result of the pandemic, Taubman h “Taubman believes that the alleged termination of Simon`s merger agreement is invalid and unfounded and that Simon remains bound to the transaction in all respects,” the company`s statement reads. “Taubman intends to maintain Simon`s obligations under the merger treaty and the agreed transaction, and to vigorously challenge Simon`s alleged denunciation and rights.” “Taubman intends to maintain Simon`s obligations under the merger agreement and the agreed transaction and to vigorously challenge Simon`s alleged termination,” Taubman said. . . .

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