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Equity One Backs Away From Cedar

TSC Staff

Equity One (EQY Quote) withdrew its $17-a-share bid for Cedar Shopping Centers (CDR Quote) on Monday after Cedar said it wouldn't be able to reply by a Monday morning deadline.

On Thursday, North Miami Beach, Fla.-based Equity One unveiled a proposal to buy Port Washington, N.Y.-based Cedar at a 14% premium to recent trading prices. Equity One also called on Cedar to withdraw a 9-million-share offering it announced Wednesday.

On Monday, Cedar said it sent Equity One a letter promsining to "have a response as promptly as practicable." But Cedar said it couldn't meet the 9 a.m. EDT deadline that Equity One had set for a response. In return, Equity One said it withdrew the offering.

"We are disappointed that Cedar was unable to discuss with us or consider our offer in a timely fashion and are even more concerned that they are apparently continuing with their proposed 9-million-share offering," said Equity One Chief Chaim Katzman.

Early Monday, Cedar fell 67 cents to $16.01, and Equity One dropped 30 cents to $23.61.