Category: Ivey Business School Case Studies

  • CME Group Forest L Reinhardt James Weber 2011

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    “Simons hosted hostile tender on Taubman a few days ago. The move had been unilaterally ordered by the New York-based group to acquire Taubman Enterprises for $5.86 a share in cash, which is a 35% premium to Taubman’s stock price prior to the move. The New York Post reports that Taubman’s stock is up 7.67% to $31.97 per share. The move had already surpassed the company’s expectations

    Evaluation of Alternatives

    The deal closed in the second quarter of 2015. We bought Taubman Centers, a real estate investment trust, which owns properties in California, Texas, Illinois, Arizona, Nevada, and Ohio. Our offer was $60 per share in cash. The other companies, including Berkshire Hathaway and Apollo Management, made lower offers. Taubman was looking for a buyer who would give them cash to repay loans and shore up the company’s balance sheet. Simons provided that.