Public Storage makes unsolicited $11 billion offer for rival
1 min read . Updated: 06 Feb 2023, 07:03 AM IST
PremiumPublic Storage unveiled an unsolicited $11 billion bid Sunday for Life Storage Inc. in a move aimed at boosting profitability.
Public Storage unveiled an unsolicited $11 billion bid Sunday for Life Storage Inc. in a move aimed at boosting profitability.
The disclosure comes weeks after Public Storage privately made the proposal to Life Storage. Under the proposed deal, holders of Life Storage shares and units would receive 0.4192 shares of Public Storage common stock for each Life Storage share or unit they own, according to a statement Sunday.
The deal values Life Storage at about $11 billion, or $129 a share — about 17% above its closing price of $110.58 on Friday, according to Bloomberg calculations. The Wall Street Journal reported Public Storage’s bid earlier Sunday.
In the statement Sunday, Public Storage said Life Storage wrote Dec. 29 that it wasn’t for sale and reaffirmed that in a Jan. 31 letter.
“We would have preferred to work privately with you to reach an agreement for the benefit of our respective shareholders, but given your refusal to engage meaningfully, we believe making our proposal public is now the most constructive approach," Public Storage Chief Executive Officer Joe Russell and Chairman Ronald Havner wrote Sunday in a letter to Life Storage’s management.
A Life Storage representative didn’t immediately respond to an email seeking comment.
This story has been published from a wire agency feed without modifications to the text.
