For Simon and Macerich, Question Is: What’s Next?

Even though Simon Property Group has withdrawn its $16.8 billion bid, that doesn’t mean the targeted Macerich Company is off the hook. Investors will carefully watch for movement in Macerich’s stock, which on Wednesday fell 6.6 percent, or $5.60, to $78.73, after Simon’s last offer was rebuffed by the Macerich board. It’s an indication Wall Street isn’t happy about the outcome. Simon Property Group’s stock rose $2.35, or 1.2 percent, to $197.99. Now Macerich must move deliberately to push up the stock price by increasing productivity at its properties and shedding those with little life, all to prove that rejecting Simon was the right decision for shareholders. “We realize that Macerich currently faces a disconnect between private market valuations and public market views — a situation we have seen before. Letting that disconnect persist is not an option, and we intend to act decisively to correct the situation,” Arthur Coppola, chairman and chief executive officer of Macerich, said late Tuesday night, just after the firm’s board unanimously rejected Simon’s takeover offer. Coppola cited a “rigorous” business plan put forward last November, involving “recycling” out of lower growth assets; redeploying capital into highly productive assets; expansion and redevelopment projects under way, and identifying additional

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