Thanks to a new agreement, the companies have avoided a legal dispute. Following the announcement of the withdrawal from the agreement, Simon filed a lawsuit against Taubman claiming that Taubman`s revenues had suffered ”significant negative effects” due to COVID-19 and that the company had not adequately mitigated the damage caused by the pandemic. On Sunday, Simon Property Group and Taubman Centers announced they had reached an agreement modifying the terms of a $US 3.6 billion merger agreement entered into earlier this year, including a new purchase price of US$43.00 per share in cash and other provisions. Under the terms of the amended agreement, Taubman will not declare or pay a dividend on its common shares until March 1, 2021. After that date, the declaration and payment of dividends on its common shares are subject to certain restrictions and conditions. The announcement was made in a joint statement. ”Taubman believes that the alleged termination of Simon`s merger agreement is invalid and unfounded and that Simon remains bound by the transaction in all respects,” the company said in a statement after announcing its intention to take the matter to court. Following the abandonment of merger plans in June, Simon Property Group entered into an agreement to acquire Taubman Centers Inc. The companies agreed to a modified purchase price of 43 $US per share, compared to the initial 52.5 $US per share that the parties had already negotiated in February. The merger is expected to close in late year or early 2021, following the agreement of Taubman`s shareholders and other customary closing conditions. Private equity firm Sycamore Partners sued Victoria`s secret mother, L Brands Inc., in April. and said the retailer breached the terms of its merger agreement by closing stores, firing workers and omitting rents.
L Brands retaliated, and both parties eventually agreed to reject the deal. The new merger agreement, approved by both boards of directors, but awaiting the agreement of Taubman`s shareholders, comes to know their dispute, says a joint press release. Downtown developers said they expect to close the deal at some point this year or early next year.