What Does This Mall REIT Merger Deal Do for Simon?

Simon Property Group (NYSE: SPG) has agreed to acquire smaller peer Taubman Centers (NYSE: TCO) for $3.6 billion. The deal is a huge statement about the mall industry, but it also has massive implications for Simon and Taubman. Here are four things to consider as you weigh the effects of this massive buyout and what it does to Simon's future.

Simon is paying $52.50 a share for Taubman. That's a 50% premium to where the shares of the mall-focused real estate investment trust (REIT) traded just prior to the deal's announcement. It's also about double what Taubman's stock price was on Feb. 1, before merger rumors started to swirl. Taubman's shares have actually traded above the offer price, too, which suggests that investors think that another suitor might come in with a higher price offer.

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Source Fool.com