Inland American Seeks Control of Cedar Shopping Centers

Inland American Real Estate Trust, which already owns 9.8 percent of the outstanding stock in Cedar Shopping Centers Inc., is seeking a waiver of a provision in Cedar’s charter barring any person or group from owning more than 9.8 percent of the company’s outstanding stock, according to an SEC 13D filed yesterday. The filing further states that Inland American is “considering seeking control of the Company through various courses of action,” including acquiring additional Cedar shares, “proposing a merger or sale or similar transaction,” or seeking representation on Cedar’s board of directors. At presstime, an Inland spokesperson had declined to comment on the transaction, and Cedar had not yet been reached for comment. The filing noted that Inland has purchased a total of more than 4.3 million shares of Cedar stock since July 2007 for a total price of more than $46.9 million. Of that total, nearly 2.8 million shares has been purchased in just the past 60 days. Cedar Shopping Centers is a fully integrated REIT that focuses on owning, operating, developing and redeveloping supermarket-anchored shopping centers in nine states on the East Coast and in New England. Cedar went public in October 2003 and currently owns and operates 118 properties totaling more than 12 million square feet of GLA, as well as owning more than 200 acres of development parcels.