Westfield calls for Rodamco EGM

By CNN's Geoff Hiscock, Asia business editor

SYDNEY, Australia (CNN) -- Australian shopping center developer Westfield Holdings pressured Dutch-based property group Rodamco North America to look at merging their U.S. operations, calling Tuesday for an extraordinary general meeting of RNA shareholders.

Westfield paid $488 million for a 23.9 percent stake in RNA on August 27 and said then that it hoped to take over the management of RNA's portfolio of 41 U.S. shopping centres and eventually merge it with its own Westfield America Trust operations.

In a statement to the Australian Stock Exchange Tuesday, Westfield said it called for the meeting after RNA "expressly declined" to continue discussions about the company's future direction in the U.S.

RNA is the third largest regional mall group in the United States with a market capitalization of about $1.7 billion.

Westfield manages shopping centers in Australia, New Zealand and the U.K. and also has a portfolio of 39 malls across the United States. It has a market capitalization of about $4.5 billion.

Lowy wants seats on RNA management board

Because of RNA's rebuff, Westfield said it wanted to inform RNA shareholders about its strategic plan.

The shareholders' meeting is likely to take place late next month, given the requirement for six weeks' notice.

Westfield has also proposed that its founder and chairman, Frank Lowy, and two of his sons, Peter and Steven Lowy, be among its six nominees to sit on RNA's management board.

Lowy ranks as Australia's second richest man behind media tycoon Kerry Packer, with a personal fortune of Aust. $3.5 billion, according to BRW magazine.

When Lowy spoke about the deal and the strategic plan for the U.S. on August 27, he told Australian reporters: "There was no red carpet rolled out for us, but we believe very much it is going to happen."

Westfield said then it had become the biggest shareholder in RNA after buying the stake from Dutch pension fund ABP. The fund retains a 6.6 percent stake in RNA.

In its statement Tuesday, Westfield said the interests of its management were "strongly aligned with those of all the shareholders of RNA as a consequence of Westfield's Euro 537 million investment in the company".

Westfield shares closed Tuesday at Aust. $17.38, a gain of 56 cents or 3.3 percent.