April 1 (Reuters) - Simon Property Group Inc scrapped its attempt to buy Macerich Co after the smaller shopping mall owner rejected its sweetened offer of $23.2 billion including debt.
Macerich shares fell 5 percent to $80 in premarket trading on Wednesday.
Simon Property raised its offer for Macerich last month to $95.50 per share from $91.00.
"Our Board carefully reviewed Simon Property Group's revised proposal and concluded that it does not reflect the full value of our company," Macerich Chief Executive Arthur Coppola said in a statement.
Macerich said it would continue to sell its lower growth properties and set a target to increase operating margins by 4 percent over the next 18-24 months.
"Macerich's stated determination to boost its operating margins in the near term seems an ambitious target and raises the question as to why this was not done sooner," Cowen & Company analyst James Sullivan wrote in a note.
Macerich shares were down at $79.99 in premarket trading. Up to Tuesday's close of $84.33, they had fallen 11 percent since March 16, a day before the company rejected Simon Property's first offer.
(Reporting by Sagarika Jaisinghani in Bengaluru; Editing by Saumyadeb Chakrabarty)