Simon to buy mall rival for $3.5 billion

Simon Property Group Inc. on Monday said it would buy Chelsea Property Group Inc. for about $3.5 billion to pump up its holdings of high-end retail malls.

Simon, which last year dropped an unsuccessful hostile effort to buy rival mall owner Taubman Centers Inc., said it would pay $66 per share for each Chelsea share and operating partnership unit in a mix of cash and Simon stock.

Simon would also assume about $1.3 billion of Chelsea debt and preferred stock.