Simon disclosed that it owns 5.71 million shares of Macerich, giving it a 3.6% stake in the company. Simon said it may ask Macerich to waive a provision that prevents it from owning more than 5% of the company. Macerich recently granted a waiver to another investor that bought a 10.9% stake in the company.
In a note to investors, JPMorgan Chase analysts Michael Mueller and Anthony Paolone said Simon's new stake could make Macerich a takeover candidate, according to Bloomberg. The analysts wrote, "We find it hard to believe that SPG's move is because it wants to be a passive investor" in Macerich.
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TheStreet Ratings team rates MACERICH CO as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate MACERICH CO (MAC) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its solid stock price performance. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."