Westfield drops Rodamco NA court action


Westfield founder Frank Lowy is one of the richest men in Australia

By CNN's Geoff Hiscock
Asia business editor

SYDNEY, Australia (CNN) -- Australian shopping center group Westfield Holdings has dropped its court action in the Netherlands against U.S. mall owner/manager Rodamco North America (RNA).

Westfield paid $488 million for a 23.9 percent stake in RNA in August and wants to take over the management of RNA's portfolio of 41 U.S. shopping centers.

Westfield said when it bought the stake it hoped to eventually merge it with its own Westfield America Trust operations.

But RNA, which is controlled by Dutch group Rodamco and is the third-largest shopping mall owner in the U.S., has resisted the Westfield move and has sought to encourage alternative offers.

In a statement released to the Australian Stock Exchange Thursday morning, Westfield said its action begun in the Enterprise Chamber of Amsterdam on December 18 had been withdrawn.

In that action, Westfield claimed RNA breached the terms of a November 15 Enterprise Chamber ruling by making confidential information available to other shopping center groups.

RNA rejected confidentiality breach

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RNA rejected any suggestion it had not complied with the ruling. In a statement on December 19, RNA said its position was that "it is free to support a potential public offer for the company".

A public offer could force Westfield into a full takeover bid.

"As a result of discussions between RNA and Westfield in the context of RNA's ongoing review of strategic alternatives, the action for injunctive relief commenced by Westfield in the Enterprise Chamber on 18 December has been withdrawn," Westfield's brief statement to the ASX Thursday said.

Westfield has had a busy time in the U.S. in recent weeks.

Apart from its dealings with RNA, on December 5 Westfield said it would buy nine regional shopping centers from the Ohio-based Richard E. Jacobs group for $756 million.

That acquisition will lift its U.S. holdings to 48 centers worth $5.7 billion.

Manager of WTC retail center

Westfield was also the manager of the shopping center component of New York's World Trade Center, destroyed by a terror attack in September.

Founded by billionaire developer Frank Lowy in 1960, Westfield is one of the biggest shopping center groups in the world, with about $13 billion of assets under management in Australia, New Zealand, the U.S. and the U.K.

Its Westfield Trust is the largest property trust in Australia.

Lowy ranks as Australia's second richest man behind media tycoon Kerry Packer, with a personal fortune of $1.8 billion (Aust. $3.5 billion), according to BRW magazine.