UK-and JSE-listed retail property focused group Capital Shopping Centres rejected the latest proposal by Simon Property Group in a latest round of a dispute regarding the planned acquisition of the Trafford Centre.

Simon, which owns 5% issued capital in Capital, earlier put out an indicative proposal of 425 pence per share in cash to the Capital board.

"The board of CSC (Capital Shopping Centre) believes that this is yet another attempt by Simon to frustrate the Trafford Centre acquisition without putting forward a proper proposal for CSC shareholders to consider as an alternative, and accordingly unanimously rejects the proposal," it said in a statement.

Capital also resolved to adjourn the extra general meeting which was scheduled for 20 December 2010 to "ensure that CSC's shareholders are provided with the necessary information about the Proposal to make a clear decision".

"The 425 pence, including the CSC expected final dividend of 10p per share, very substantially undervalues the company and its prospects.

CSC owns an irreplaceable and unrivalled portfolio of regional shopping centres, built up over 30 years, that is impossible to replicate given the barriers to entry in this sector, the enlarged group will own 4 of the top 6 out-of-town shopping centres in the UK," Capital said.

Capital said it strongly believes that the inclusion of the Trafford Centre in its portfolio will significantly enhance value, while also CSC's portfolio will generate long-term attractive returns for shareholders significantly superior to Simon's cash proposal. The date of the adjourned

EGM is now expected to be in late January 2011.

Source: I-Net Bridge