CSC says Simon plans are 'completely impracticable'

Capital Shopping Centres Group has rejected alternative plans for financing the Trafford Centre by Simon Property Group as completely impracticable.

CSC says the board continues to believe it is in shareholders' best interests to proceed with the acquisition on the terms agreed with Peel which represents a "compelling transaction of significant benefit to CSC shareholders".

It says SPG proposes that CSC could issue 153.3 million new ordinary shares at 400p per share and £209m of bonds convertible into 52.2 million new ordinary shares directly to SPG for cash.

The issue would be subject to a clawback of 50% by existing CSC shareholders.

The CSC board says this would provide SPG with a holding of between approximately 18.4% and 26.9% in CSC, together with a seat on CSC's Board.

CSC adds: "It is not open to CSC unilaterally to alter the terms of its legally binding contract with Peel.

"Therefore, what SPG proposes does not provide a genuine alternative for CSC shareholders."

CSC says it considers that what SPG is suggesting is incapable of implementation and completely impracticable.

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