CSC sticks with Trafford deal despite bid interest
Friday 26 November 2010
Capital Shopping Centres pushed ahead with its £1.6bn plan to acquire the Trafford Centre near Manchester last night, shrugging off calls from Simon Property to halt the deal to give the US-based company a chance to prepare an offer for Capital itself.
Capital said Simon, which has a 5.6 per cent stake in the shopping centres group, had asked it to put the Trafford deal on ice until "it had had the opportunity" to forward a "potential cash offer... at an unspecified premium" to net asset value.
The news helped to propel shares in Capital more than 13 per cent to 393p yesterday. Its net asset value at the end of June was 368p.
However, Capital added, as Simon had not made an offer, put forward an indicative proposal or given any certainty that an offer would actually be made, it was moving forward with plans to buy Trafford from John Whittaker's Peel Group.
The company, known as Liberty International until the demerger of its London-focused Capital & Counties business earlier this year, yesterday raised £221m for the Trafford deal by placing 63.3 million new shares with investors at 355p a piece.
Capital shareholders will have the chance to vote on the acquisition at an extraordinary general meeting next month. The Gordon family, which owns more than 14 per cent of the business, backs the purchase.
The Trafford Centre deal will see Peel become the biggest share-holder in Capital, with a stake of about 20 per cent. Peel could raise this to nearly 25 per cent via the convertible bonds issued as part of the deal.
Analysts said that the inclusion of the Trafford Centre in its portfolio would raise Capital's valuation to 425p-450p, meaning that Simon would have to pay more to mount a successful takeover bid.
"The Trafford deal will increase CSC's market capitalisation and hence the cheque Simon would have to write to acquire the business from £2.5bn to £3.1bn," Michael Burt, an analyst at Execution Noble, said.
Culinary experts in The Netherlands thought it was 'fresh' and 'tasty'
Of all the computers Apple has ever made there’s only one that Steve Jobs had to sell his car to finance
Actress sees off speculation about her face in an amazing way
Marvel has released first teaser trailer week early after it leaked online
The sound of Goodfellas mafioso Frankie Carbone demanding $250m in “damages” would be chilling enough on film, let alone in real life.
- 1 Nokia no more: Microsoft drops once-ubiquitous mobile name – in favour of its Lumia brand
- 2 Renee Zellweger on plastic surgery: 'I'm living a fulfilling life and I'm thrilled that perhaps it shows'
- 3 Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
- 4 Australian café owner sparks debate after saying 'No' to having unruly children on premises
- 5 Paralysed man Darek Fidyka walks again after treatment by British doctors on brink of 'cure' for paralysis
Ottawa shooting: Canadian soldier dies after being shot at National War Memorial – with one gunman killed inside parliament
Renee Zellweger on plastic surgery: 'I'm living a fulfilling life and I'm thrilled that perhaps it shows'
Isis releases first video showing the stoning of woman accused of committing adultery as her father shouts 'don't call me Dad'
Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
Diwali 2014: What is the festival of lights and how is it celebrated around the world?
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Support for EU membership 'at highest level since 1991' with most Brits wanting to stay 'in'
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver 'kicks gay couple off for kissing'
iJobs Money & Business
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£18000 - £23000 per annum + Commission: SThree: The SThree group is a world le...
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£20000 - £25000 per annum + OTE £Competitive: SThree: SThree Group and have be...