Saudi Arabia Is Making a High-Risk $1 Trillion Bet on Tourism
The kingdom must overcome a conservative image and concern about human rights. Visit the desert oasis town of AlUla to understand the challenge.
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The kingdom must overcome a conservative image and concern about human rights. Visit the desert oasis town of AlUla to understand the challenge.
Jury selection was completed Friday for Donald Trump’s first criminal trial, setting the stage for opening arguments Monday in a New York case accusing the former president of falsifying business records to conceal a sex scandal before the 2016 election.
Higher-than-expected interest rates amid persistent inflation are perceived as the biggest threat to financial stability among market participants and observers, according to the Federal Reserve.
Fifth Third Bancorp jumped the most in four months, leading bank stocks higher, with Chief Executive Officer Tim Spence predicting that income from lending has bottomed out.
China’s securities regulator said it will encourage the nation’s companies to list in Hong Kong as it unveiled a package of measures to bolster the city’s position as an international financial hub.
Feb 10, 2020
Bloomberg News
,(Bloomberg) -- Simon Property Group Inc.’s agreement to buy rival U.S. shopping-mall operator Taubman Centers Inc. should help reassure investors that Class A mall real estate investment trusts are undervalued, according to Morningstar.
The 51% premium Simon agreed to pay on Taubman’s Friday closing share price “shows that they are willing to pay significantly more for this portfolio from where it’s currently trading in the public market,” analyst Kevin Brown said.
“There are some Class A mall companies like Macerich that have traded off significantly that could be the target of a similar type of deal,” Brown said in a phone interview. “But whether or not those companies are willing to entertain offers, that will be the determining factor.”
However, with Simon unlikely to issue diluted equity to acquire any other companies, future deals will rely on alternative asset managers like BlackRock Inc. or Brookfield Asset Management Inc. as buyers, he said.
News of the deal comes as mall-oriented REITs have faced pressure to consolidate amid a wave of retail bankruptcies, such as Forever 21.
Still, Monday’s deal announcement doesn’t mark a huge change in the outlook for more deals in the space, Piper Sandler analyst Alexander Goldfarb said.
“There was really only one buyer in the space and that was Simon and there was really only one company they were going to buy and that was Taubman,” Goldfarb said.
Shares of Macerich Co. rose as high as 12% on Monday following news of the Taubman deal. Meanwhile, Tanger Factory Outlet Centers and Pennsylvania Real Estate Investment Trust gained as much as 3.4% and 6.2%, respectively.
To contact the reporter on this story: Andres Guerra Luz in New York at aluz8@bloomberg.net
To contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Steven Fromm
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