Information Provided By:
Fly News Breaks for March 2, 2020
SPG, TCO
Mar 2, 2020 | 13:37 EDT
Piper Sandler analyst Alexander Goldfarb does not believe Simon Property (SPG) will back out of its deal to acquire Taubman Centers (TCO) despite the recent coronavirus related selloff. The merger is about long-term synergies and combining two of the top tier retail portfolios, Goldfarb tells investors in a research note. The analysts sees the coronavirus as a short term health and financial issue "that will hopefully be addressed in due course." Barring a material change in the environment that makes it financially unrealistic to contemplate closing, there's far more risk to Simon's valuation if it backed out of the deal, says the analyst. As such, Goldfarb believes the $52.50 cash deal for Taubman remains on track to close in mid-2020. The analyst keeps a Neutral rating on Taubman shares.