>>> Repsol shareholder CaixaBank prepares to sell 2.5% stake

Repsol shareholder CaixaBank prepares to sell 2.5% stake

CaixaBank is preparing to sell 2.5% of its holding in the listed Spanish oil group Repsol, Expansion reported, citing a memorandum from the Spanish bank. It has taken financial measures to protect itself from the volality of oil stock prices.

According to its own data, La Caixa (parent of Caixabank) owned 11.89% of Repsol as of December 2014, the Spanish-language report said. La Caixa gives the stake a book value of EUR 3.413bn, but at market prices the stake is worth less than EUR 2.8bn, the report noted.


Expansion

>>> Raiway and EI Towers networks may be transferred to newco involving CdP

Raiway and EI Towers networks may be transferred to newco involving CdP 

Raiway and EI Towers, the listed Italian transmission tower networks, could transfer their networks into a newco where state-owned Italian holding company CdP would take a stake.

An unsourced report in Italian language daily Il Sole 24 Ore said the plan had been drawn up by investment banks and presented to the various parties. CdP, Rai, the Italian TV and radio broadcaster, and Mediaset, the listed Italian media group, would each hold a third of the newco.

Mediaset controls EI Towers and Rai controls Raiway, the report noted.

The item noted Mediaset might be keen on the idea as it could sell part of its stake in EI Towers and reduce debt. The project is not likely to be launched in the near future, as EI Towers is determined to go ahead with its public offer on Raiway, the article added.

Raiway has a market cap of EUR 1.088bn.

Il Sole 24 Ore

>>> Banco BPI board meets today for final chance to decide on CaixaBank bid valu

Banco BPI board meets today for final chance to decide on CaixaBank bid valued at EUR 1.94bn

Banco BPI board members will meet again today (Thursday 5 March) in an effort to get consensus on CaixaBank's EUR 1.32 per share voluntary offer, which some BPI investors believe is too low, reported Diario Economico. Sources familiar with the process told the Lusophone business paper that BPI's management is under pressure from several key shareholders to get a raised offer from CaixaBank, which already owns 44.1% of the listed Portuguese financial group.

BPI shares closed at EUR 1.44 on Wednesday and most market analysts believe there is room for CaixaBank to increase its bid value, which was pitched at the legal minimum based on the bank's average stock price over the past six months. BPI investors Isabel dos Santos, with a 19% stake, and the Violas family, owning 2.5%, have already indicated that the Spanish bank's bid is too low.

Meanwhile, Jornal de Negocios reported that the BPI board has until midnight today to pronounce on the CaixaBank offer, in accordance with Portuguese law on public takeovers. The bid values BPI at EUR 1.94bn.
Diario Economico, Jornal de Negocios

(BFW) France to Drop Idea of Ending Highway Contracts, Parisien Says


BN 03/05 05:29 *FRANCE TO DROP IDEA OF ENDING HIGHWAY CONTRACTS, PARISIEN SAYS

France to Drop Idea of Ending Highway Contracts, Parisien Says
2015-03-05 05:31:49.880 GMT


By David Whitehouse
(Bloomberg) -- Working group of parliamentarians and civil
servant may rule out the idea of ending highway contracts as
early as today, Le Parisien reports, citing an unidentified
member of the group.
* Ending the contracts would cost EU40B-EU50B, the person
tells Le Parisien.

Link to Company News:{ABE SM <Equity> CN <GO>}
Link to Company News:{DG FP <Equity> CN <GO>}
Link to Company News:{FGR FP <Equity> CN <GO>}

For Related News and Information:
First Word scrolling panel: {FIRST<GO>}
First Word newswire: {NH BFW<GO>}

To contact the editor responsible for this story:
David Whitehouse at +33-1-5365-5059 or
dwhitehouse1@bloomberg.net

WSJ : China Lowers Growth Target to About 7%


China Lowers Growth Target to About 7%
This year’s target to signal how ready leaders are to settle for ‘new normal’

BEIJING—China lowered its economic growth forecast to about 7% for 2015 at the opening of the country’s biggest political event of the year, ushering in what leaders have dubbed a “new normal” of slower growth in the world’s second-largest economy.

The move signaled Beijing won’t take dramatic action to raise the growth rate above last year’s level, which at 7.4% was its lowest level in nearly a quarter-century. At the same time, its leaders signaled concerns that an even sharper drop in growth risks higher unemployment and social unrest.

In remarks before the country’s lawmakers on Thursday, Premier Li Keqiang listed the challenges to the Chinese economy, including sluggish investment growth, overcapacity, deflationary pressure and increasing public demand for better social services.


The new target “takes into consideration what is needed and what is possible,” Mr. Li said at the opening of the National People’s Congress, China’s annual parliament. Of the challenges, he said, “We must face these problems head on.”

China’s National People’s Congress Begins
Chinese Premier Li Keqiang’s speech on the economy opened the National People’s Congress, China’s annual legislative session Thursday. China lowered its economic growth forecast to about 7%.

Chinese President Xi Jinping was served by an attendant during the opening of the NPC.
The third session of China's 12th National People's Congress opened at the Great Hall of the People in Beijing Thursday, March 5.
Military personnel watched over Tiananmen Square from a rooftop across from the Great Hall of the People, as the sun rose before the opening session of the National People's Congress in Beijing, Thursday.
A military band member checked his watch before rehearsals for the opening session of the NPC at the Great Hall of the People Thursday.
Ethnic minority delegates from Guizhou Province posed for pictures ahead of the opening of the NPC.
Military delegates arrived for the opening of the NPC at Tiananmen Square.
Attendants waited to serve water to delegates.
A military band conductor practiced at the Great Hall of the People.
Chinese President Xi Jinping was served by an attendant during the opening of the NPC.
The third session of China's 12th National People's Congress opened at the Great Hall of the People in Beijing Thursday, March 5.

Mr. Li on Thursday was more sober in tone than previous speeches. Several times he referred to the necessity of not letting growth slide further. He called for “a medium-high-level growth rate,” and suggested that falling below that would stall the drive to raise incomes. That could leave China in the “middle-income trap”—unable to create enough jobs and fund the transition to an economy driven by services, small business and innovative companies.

China’s targets illustrated the balance it is trying to strike as it encourages reform while trying to sustain growth. The government said it would increase deficit spending, lower targeted trade and fixed-asset investment growth, and increase money supply if needed. At the same time, it said it would loosen price controls on pharmaceuticals and energy and push to restructure its bloated state-owned enterprises.

Beijing’s new target follows a year in which the leadership struggled, and ultimately fell slightly short, of hitting its “about 7.5%” growth target for 2014. Targets remain far more important in China than in most other countries and are more directly tied to the leadership’s prestige and serve as a tool to guide the bureaucracy.

“They seem to be giving themselves an opportunity to go for reform acceleration by taking some of the growth pressure off the table,” said Conference Board economist Andrew Polk. “But we’ll see if they make good on this opportunity because in my mind they didn’t last year.”

In recent weeks, Beijing has unveiled increasingly dramatic moves to spur bank lending in a bid to rekindle economic momentum. But such moves could set back its efforts to shift away from excessive reliance on exports, a bloated property market and government spending.

China’s leadership has for months been preparing its people for tougher times ahead. In China, significant changes often involve a slogan, and the leadership’s “new normal” mantra—designed to lower Chinese expectations at a time when people’s aspirations are rising—was reflected Thursday in the numbers.

The targets suggest business could face another challenging year from China, traditionally a source of strong sales growth. Over the past year retail sales growth has slowed and markets ranging from cars to consumer goods are showing signs of weakening.

Many businesses are already recalibrating. “Since we have affected by recent slowdown already, we will continue to keep a careful eye on the Chinese economy,” said a spokesman for Japan’s Komatsu Ltd.

Domestically, demand looked weaker. Even as it moves to ease monetary policy, many Chinese companies say they don’t want to borrow or expand given weak demand. Smaller companies seeking credit say banks aren’t receptive because of worries about bad loans.

Canon Inc., the Japanese maker of cameras and printers, has been feeling the impact from China’s austerity campaign, with weaker demand from government agencies and state-owned businesses, said Hideki Ozawa, the president of Canon China. Although purchasing power is rising among middle-class shoppers, he said, “it’s not strong enough to lift up the whole economy,” he said.

In his address Thursday, Mr. Li said China was committed to reform on a number of long-touted fronts to overcome structural “tigers in the road” that impede progress. Among those measures are greater use of cleaner fuel, an expansion of the value-added tax, tighter control over local government debt, further paring of red tape and the rollout of bank deposit insurance.

“As the force that has traditionally driven economic growth is weakening, it is imperative that we intensify structural reform,” Mr. Li said in a hall packed with some 3,000 delegates.

But the premier also warned that reform must be tempered with enough growth to further the nation’s development goals and stem social unrest. China retained its goal for new urban job creation of about 10 million compared with actual creation of over 13 million last year and capped unemployment at 4.5%.

In an era of downward revision, Mr. Li, the nation’s chief economic architect, also sought to instill hope in the future, pointing to the nation’s potential to emerge stronger if private sector momentum can be tapped, small business encouraged and more companies go global.

“When an abundance of market cells spring into life, they will form a mighty driving force for development, ensuring China’s economy remains resilient in spite of the downward pressure on it, and continues to be full of life and dynamism,” he said.

But economists said pledges to encourage entrepreneurship and market principles without a significant reduction in the clout of China’s often bloated and politically powerful state-owned companies won’t be enough to retool an economic model they say has run its course. Mr. Li pledged to “move more swiftly” to improve their performance of state companies and take systemic steps to implement mixed ownership and other reforms.

“They’re moving too slowly,” said Standard Life Investments economist Alexander Wolf. “They missed the golden period of higher growth when reforms would have been easier.”

Without significant progress on some of the most entrenched structural problems, growth will slow further, he added. “And if the model still hasn’t changed, that’s the real concern,” Mr. Wolf said.

China’s reforms matter on a global level. If China ends up favoring short-term growth over restructuring this year, this could give a boost to a world economy suffering from Europe’s malaise and an unsteady recovery in the U.S. But it could also raise questions about China’s long-term role as a global economic growth engine.

WSJ : Former Xstrata Chief Raises $5.6 Billion for Mining Deals

Former Xstrata Chief Raises $5.6 Billion for Mining Deals
Potential targets include assets from Rio Tinto, BHP Billiton, Anglo American

LONDON—Mining veteran Mick Davis looks poised to pull the trigger on some big deals at a time of cheap mineral prices and willing sellers.

The former Xstrata PLC chief executive has raised $5.6 billion for his mining fund, X2 Resources, and plans to start deploying cash in the next few months, according to people familiar with his plans. The people said that X2 has closed itself to new investors after having raised cash from sovereign-wealth funds, pension funds and private-equity firms such as TPG Capital.

Potential targets include assets held by mining giants such as Rio Tinto PLC, BHP Billiton Ltd. and Anglo American PLC, and X2 has held talks with all three companies, one of the people said. The companies declined to comment. X2 is expected to disclose on Thursday that it has wrapped up fund-raising.



X2’s emergence gives the mining industry something its executives and observers have long anticipated: a deal-savvy operator armed with a wad of cash and looking for acquisitions in an arena stricken by collapsing prices for commodities, such as iron ore.

Mr. Davis formed X2 in London in September 2013, about four months after taking part in the largest mining deal: the $29.5 billion Glencore PLC acquisition of Xstrata. Mr. Davis began raising money soon after he and several top lieutenants left Glencore.

“We continue to carefully review a number of opportunities in the sector in detail,” Mr. Davis said in a statement. “The long-term nature of our strategy provides us with the flexibility to target those opportunities where we see the greatest potential for value creation.”

X2 has $4 billion in so-called committed capital, which it can immediately deploy for deals, according to a person familiar with the terms. The remaining $1.6 billion in capital is conditional upon certain undisclosed requirements by the firm’s investors, the person said.

Some experts say Mr. Davis could find it hard to find enough solid mining assets for sale. Big miners are unlikely to dispose of quality mines, and X2 will have to compete with giants such as Glencore for other attractive deals. Mr. Davis’s backers say he put together a world-class portfolio at Xstrata and can do it again at X2.

In addition to assets at major miners, X2 is also looking at midtier miners in financial distress and junior mining outfits near production, according to the person familiar with the fund’s plans. It is looking at commodities such as copper, zinc and nickel, among others, in regions such as Latin America, the U.S. and Africa, the person said. An advisory board, whose members have committed at least $500 million apiece, will review the firm’s investment decisions.

Among its investors is Noble Group Ltd. , a Singapore-listed commodities trader whose shares have fallen sharply recently amid questions about its accounting practices. Noble has defended its accounting practices and said its auditors had signed off on its results.

The launch of X2’s fund comes during a long-running lull in deal-making activity in the mining industry, which is struggling as demand in China and elsewhere wanes.

Deal volume declined 23% to 544 in 2014 from the previous year, marking the fourth straight year of declining volume, according to consultants Ernst & Young LLP. The valuation of deals plunged even more, sliding 49% last year to $44.6 billion. Megadeals have been even more scarce, with just 11 deals of more than $1 billion in 2014, down from 18 in 2013, Ernst & Young reported.

The top of the latest deal cycle, which rode a wave of surging commodity prices, was marked by the Glencore-Xstrata tie up.

Other mining executives, such as former Vale CEO Roger Agnelli, have also embarked on fundraising campaigns. But so far little money has been spent amid uncertainty about the course of commodity prices.

Big mining companies such as BHP, Rio and Anglo haven’t signaled they plan major acquisitions. BHP is planning the opposite, spinning off some of its assets into a new midsize mining company called South32, whose value analysts have pegged at roughly $15 billion

Activity could heat up later this year, especially if firms such as X2 begin to deploy capital, some analysts and bankers say.

One major mining outfit X2 hasn’t discussed deals with is Glencore, the person familiar with the matter said. The Swiss miner and commodities trader opened talks with Rio about a takeover last year but was rebuffed. Glencore could approach Rio again in April. But recent declines in commodity prices central to Glencore’s business, such as copper and coal, could make a deal tough to pull off, market experts say.

Glencore still could be on the hunt for less-hard-to-swallow assets. If so, that potentially could pit Mr. Davis against Glencore CEO Ivan Glasenberg, a dynamic that would add some heat to what has been an ice-cold deals market in mining.

>>> US After Hours : RNDY +12.7%, PEIX +11.6%, BIOL +10.3%, ECR

After Hours Summary: RNDY +12.7%, PEIX +11.6%, BIOL +10.3%, ECR -16.6%, PCOM -9.8%, ALSK -5.3% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: RNDY +12.7%, PEIX +11.6%, BIOL +10.3%, HRTG +7.8%, MLR +6.9%, VSLR +5.5%, DAR +4.4%, SQNM +1.4%, TSE +1.3%, AXAS +1.2%, ALDW +0.6%, POWR +0.3%

Companies trading higher in after hours in reaction to news: CPRX +5.3% (Amifampridine phosphate for the treatment of congenital myasthenic syndromes granted FDA Orphan Designation status), GLDD +4.7% (awarded ~$134.5 mln Army contract), TGTX +4.2% (discloses terms of Global Collaboration with Checkpoint Therapeutics; to make an up-front payment of $500k), PCYC +3.1% (seeing reports that co has agreed to be acquired by Johnson & Johnson)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: ECR -16.6%, PCOM -9.8%, ALSK -5.3%, SMTC -5.3%, CCRN -4%, HRB -3.1%, ERJ -2.6%, CPE -1.3%, MOMO -0.8%, PPO -0.6%

Companies trading lower in after hours in reaction to news: VNDA -7.3% (announced tradipitant Phase 2 proof of concept study results for chronic pruritus in atopic dermatitis: no significant differences seen between treatment groups due to high placebo effect), ECA -3.8% (announced agreement with underwriters syndicate for bought deal purchase of ~85.62 mln common shares of its common stock for C$14.60/share; ~C$1.25 billion in gross proceeds expected), ARI -2.9% (announced public offering of 10 mln shares of common stock), NSR -2.7% (released a statement on the LNPA vendor selection; said the process has "been botched procedurally"), LF -1.5% (disclosed that on February 27, 2015, Sarah A. Mason, Corporate Controller and Principal Accounting Officer notified the Company that she is resigning from the Company, effective March 20, 2015) 

>>> Asian Update

Asian Mid-session Update: China unveils soft 2015 GDP target of "around" 7%, inflation of about 3%


***Economic Data***
- (AU) AUSTRALIA JAN TRADE BALANCE (AUD): -980M V -925ME; 10th consecutive deficit
- (AU) AUSTRALIA JAN RETAIL SALES M/M: 0.4% (3-month high) V 0.4%E
- (BR) BRAZIL CENTRAL BANK (BCB) RAISES SELIC TARGET RATE BY 50BPS TO 12.75%; AS EXPECTED

***Index Snapshot (as of 03:30 GMT)***
- Nikkei225 +0.1%, S&P/ASX -0.2%, Kospi +0.1%, Shanghai Composite -1.0%, Hang Seng -0.6%, Mar S&P500 +0.1% at 2,098

***Commodities/Fixed Income***
- Apr gold +0.3% at $1,204, Apr crude oil +0.3% at $51.78/brl

- (CN) PBoC to inject CNY40B in 7-day reverse repos (3rd consecutive injection); Drains net CNY145B this week v drained CNY142B prior
- (JP) Japan investors bought net ¥470.9B in foreign bonds v bought ¥166.2B in prior week; Foreign investors bought net ¥350.5B in Japan stocks v bought ¥289.3B in prior week
- JGB: (JP) Japan MoF sells ¥0.64B in 1.5% (1.5% prior) 30-yr notes; Avg yield: 1.510% v 1.464% prior; Bid to cover: 3.67x v 2.67x prior

***Market Focal Points/FX***
- China National People's Congress opened today, and instead of waiting for the conclusion of the summit to unveil 2015 targets, Premier Li pulled the curtain on govt forecasts from the start. As anticipated, China is forecasting 2015 GDP at "around 7%" - a new 11-year low and a softer (more vague) target than "about" 7.5% tipped for 2014. CPI is now seen at around 3.0% vs 3.5% in 2014, while trade growth projections were knocked down to 6.0% from 7.5% in 2014. 2015 M2 is estimated at 12.0%, also a notable downgrade from 13% last year. Among the quantitative objectives, policymakers also outlined a range of qualitative initiatives - progress on cross-border yuan payment system, convertibility on capital account, broader use of FX reserves, more freely floating yuan, a deposit insurance system, land reform to stabilize housing consumption, end of price controls for pharmaceuticals, and curbing of overcapacity in the outdated coal industry to help reduce CO2 emissions. Pharma names and Yuan are among the early beneficiaries of this ambitious agenda, even though the broader mainland market is down by about 1%. Separately, PBoC adviser Chen also forecasted continued monetary policy easing in H1 of 2015, but no widening of Yuan trading band.

- AUD/USD was not particularly impacted by either China 2015 announcements or the local economic data out of Australia. January trade balance was a deficit for the 10th consecutive month but mainly because imports recovered with a 3% growth vs -1% in the prior month. Exports to China were down 16%, and shipments of oil and iron ore were down 24% and 9% respectively. Australia retail sales were in line with consensus, led by purchases of Clothing, footwear and personal accessory category of 0.7%. RBA Dep Gov Lowe noted AUD is now much closer to fair value but still too high for the state of the economy, elevated by easy policies of other central banks, adding households are reluctant to take on leverage and reiterating the central bank can ease further if needed.

- BOJ dissenter Kiuchi spoke at length about his continued opposition to the latest round of easing implemented last October, noting the costs of current policy have exceeded the benefits. Kiuchi expects private consumption to remain firm and exports to increase gradually, though he also admitted to holding a more cautious view on Japan's economic, price outlook than median BOJ projections. On inflation, Kiuchi said the 2% target is above appropriate levels for Japan economy and should instead be made more flexible. USD/JPY was up modestly on the session, rising about 20pips above 119.80.

***Equities***
US markets:
- PEIX: Reports Q4 $0.41 v $0.12e, R$256.2M v $242Me; +11.5% afterhours
- HRTG: Reports Q4 $0.66 v $0.38e, R$85.4M v $59.6Me; +8.0% afterhours
- MLR: Reports Q4 $0.50 v $0.21 y/y, R$147.8M v $108.3M y/y; Raises quarterly dividend 6.7% to $0.16; +6.9% afterhours
- MAC: Simon Property said to have made a takeover approach - financial press; +5.3% afterhours
- DAR: Reports Q4 $0.42 v $0.18 y/y, R$1.0B v $447.9M y/y; +3.7% afterhours
- MOMO: Reports Q4 -$0.10 v -$0.07 y/y, R$18.6M v $2.3M y/y; +0.4% afterhours
- GD: Increases dividend 11% to $0.69 from $0.62; +0.2% afterhours
- NKE: Announces Management Changes in Greater China and Global Footwear; flat afterhours
- ERJ: Reports Q4 Net profit $129M v $373M y/y, Rev $2.05B v $2.30B y/y; -2.6% afterhours
- HRB: Reports Q3 -$0.13 v -$0.28e, R$509M v $446Me; -4.0% afterhours
- VNDA: Announces Tradipitant Phase II Proof of Concept Study Results for Chronic Pruritus in Atopic Dermatitis; -5.7% afterhours

- PCYC: AbbVie to acquire Pharmacyclics, including its blockbuster product Imbruvica; for $261.25/share (cash and stock), total transaction value of approx $21B

Notable movers by sector:
- Consumer Discretionary: Phoenix Satellite Television Holdings 2008.HK +0.4% (FY14 guidance)
- Financials: Magellan Financial Group MFG.AU -1.4% (FUM as of end-Jan)
- Industrials: JFE Holdings 5411.JP +1.0% (to build plant in Abu Dhabi)
- Technology: ASM Pacific Technology 522.HK -4.5% (FY14 results)
- Healthcare: Eisai Co Ltd 4523.JP +5.7% (enters cooperation with Merck)

WSJ : AbbVie to Buy Pharmacyclics in $21 Billion Deal

AbbVie to Buy Pharmacyclics in $21 Billion Deal
Deal a mix of cash and stock for $261.25 a share

AbbVie Inc. said late Wednesday it will buy cancer biotech Pharmacyclics Inc. in a $21 billion deal that returns the Chicago drug company to deal-making after backing away from a big tax-lowering takeover last year.

The deal, a mix of cash and stock for $261.25 a share, would give AbbVie a presence in the multibillion-dollar blood-cancer market, and lessen its reliance on an aging rheumatoid-arthritis drug that accounts for most of its sales.

AbbVie had reached a $54 billion to buy Irish drug company Shire PLC last year, before abruptly walking away after the Obama administration took steps to deter such tax-lowering deals.

AbbVie said it expects the deal to close in the middle of this year.

Pharmacyclics, of Sunnyvale, Calif., sells a drug called Imbruvica with partner Johnson & Johnson . Imbruvica has been approved for two blood cancers—a rare lymphoma and a form of leukemia.

Advertisement

In its first full year on sale, the pill had $548 million in world-wide net product revenue last year, Pharmacyclics reported. The company projects sales will reach $1 billion this year.

WSJ : Simon Property Makes Takeover Approaches to Macerich


Simon Property Makes Takeover Approaches to Macerich
Simon in November disclosed a 3.6% stake in rival company

Simon Property Group Inc. has made takeover approaches to Macerich Co. , seeking to combine two of the largest shopping-mall owners in the U.S.

The latest approach came within the past few weeks, and followed one late last year, according to people familiar with the matter. Simon hasn’t made a formal offer for Macerich, which has a market value of just over $13 billion, according to one of the people.

It isn’t clear how receptive Macerich might be to a deal, but in recent weeks the company has been discussing a potential takeover defense with its advisers, some of the people said.

The latest overture falls early in a March window to nominate directors to Macerich’s board, which could give Simon a pathway to go hostile should the company rebuff its advances. Still, real-estate investment trusts like Macerich are notoriously difficult takeover targets, in part because of various state laws that protect them from unsolicited bids.

In Maryland, where Macerich and many other REITs are incorporated, state law affords them antitakeover protections that can slow down hostile suitors and limit their ability to accumulate shares without the consent of the target company’s board.

In November, Simon disclosed a 3.6% stake in Macerich, a move many investors saw as the first step in a takeover attempt. The disclosure, which sent Macerich’s share price soaring to a multiyear high, came just days after the company struck a deal to buy out Ontario Teachers’ Pension Plan’s interest in five of its highest-quality malls, for $1.9 billion. Macerich paid for the properties in shares, handing a roughly 11% stake to the Canadian retirement fund.

A combination of Indianapolis-based Simon and Macerich, of Santa Monica, Calif., the country’s first- and third-largest mall owners respectively by market capitalization, could give the companies more clout in negotiating leases with store owners at a time when the industry is grappling with declining foot traffic as more consumers shop online. It could also help Simon expand in the West. Simon has 190 properties and a market value of nearly $60 billion. Macerich has a portfolio of 59 shopping centers concentrated in California and Arizona.

Simon has been an aggressive acquirer of retail properties under Chairman and Chief Executive David Simon, a hard-charging former investment banker who took over his family’s real-estate business in 1995. In 2007, Simon was a partner with hedge fund Farallon Capital Management LLC in buying Mills Corp., a rival mall operator, for $7.9 billion. In 2012, Simon bought a stake in French retail landlord Klepierre SA, and its European exposure expanded further earlier this year when Klepierre bought Dutch rival Corio NV for $9.7 billion.

Mr. Simon has had his share of rejections too. A 2002 hostile bid for Taubman Centers Inc. was thwarted when the governor of Michigan, where Taubman is based, signed a law aimed at protecting REITs from unwelcome offers. A series of takeover bids starting in 2009 for General Growth Properties Inc., coming out of bankruptcy at the time, failed as well.