UPDATE 2-Simon Property told to make firm CSC offer by Jan 12

* Takeover Panel says Simon must make offer by Jan 12

* Says both Simon, CSC have agreed to ruling

* Simon Property seeks support from CSC shareholders

(Adds Simon Property response in final 2 paragraphs)

LONDON, Dec 17 (BestGrowthStock) – Britain’s takeover watchdog ruled
on Friday that American real-estate group Simon Property (SPG.N: )
must announce a firm intention to make an offer or otherwise for
UK rival Capital Shopping Centres (CSCG.L: ) by Jan. 12, 2011.

The Takeover Panel said in a statement that Simon Property
was required to state whether not it intended to make a firm
offer by 1700 GMT on the day. It said both parties had accepted
the ruling.

On Wednesday, Indianapolis-based Simon made a preliminary
indicative offer of 425 pence per share for Britain’s CSC,
valuing it at 2.9 billion pounds. The British company’s board
rejected it immediately, saying it “very substantially
undervalues the company”. [ID:nLDE6BE09D]

Simon Property, the largest U.S. mall owner and also a 5.1
percent shareholder in CSC, said on Wednesday its own board
supported its indicative offer.

It added that it expected CSC to provide the due diligence
information to help it make the offer a formal one.

Responding to the ruling, CSC’s board said the development
“will bring to an end the uncertainty created by Simon’s
attempts to frustrate the Trafford Centre acquisition and will
ensure that CSC’s shareholders will have clarity over the nature
of any proposal which Simon may put forward”.

CSC said it has adjourned a shareholder vote on the deal to
buy the Trafford Centre mall to Jan. 26 from Dec 20.

Simon Property had earlier sought to block the deal for fear
it will reduce its stake in CSC.

On Friday, Simon Property sought to get support from CSC’s
shareholders, saying that CSC’s investors should have the final
say in the matter and should put pressure on CSC management to
open up its books to Simon Property.

“Given the deadline of 12 January for Simon’s firm offer
announcement, time is short. Simon strongly believes the
ultimate decision should rest with CSC shareholders and not with
the CSC board,” Simon Property said in a statement.
(Reporting by Daryl Loo; additional reporting by Sudip
Kar-Gupta; Editing by Will Waterman)
(See www.reutersrealestate.com for the global service for real
estate professionals from Reuters)

UPDATE 2-Simon Property told to make firm CSC offer by Jan 12