Prior to the pandemic, Mall REIT Simon Property Group announced it would acquire Taubman Centers for $52.50 per share. However, following the outbreak of the coronavirus in the United States, Simon sued to try and get out of the transaction, leading to a countersuit from Taubman to force the deal through.
Both companies have been hard hit by closures, as malls have been some of the last locations to reopen and many of their tenants have been forced into bankruptcy. So, Simon’s goal of stopping the transaction made sense at a time when the future of malls is uncertain and preserving liquidity is critical.
However, the two companies were able to come to an agreement out of court, cutting the price per share that Simon would pay by roughly 20%. BofA, Citi, and Evercore served as financial advisors to Simon on the deal while Goldman Sachs served as financial advisor to Taubman.