Life Storage rejects $11 bln takeover bid from Public Storage (updated)

Life Storage

16/02/2023 22:52

(Adds details, background)
       Feb 16 (Reuters) - Self-storage properties operator Life
Storage Inc  LSI.N  on Thursday rebuffed an $11 billion
all-stock takeover bid from bigger rival Public Storage  PSA.N ,
the latest rejection in the buyout battle.
    Life Storage said it was undervalued in the bid that offered
0.4192 share of Public Storage for each share of the company.
The bid equates to $126.14 per share based on Public Storage's
closing price on Wednesday.
    Public Storage, the largest U.S. operator of self-storage
properties, was not immediately available for comment on
Thursday.
    A deal between the two real estate investment trusts (REIT)
would consolidate a fragmented industry and create a
self-storage giant that would have the scale to tackle
competition in a post COVID-19 world where demand for
self-storage properties has waned as people have started
returning to big cities.
    Glendale, California-based Public Storage said on Feb. 5
that Life Storage had rejected an offer under similar terms in
January, forcing the company to make its approach public. 
 (Reporting by Sourasis Bose in Bengaluru; Editing by Krishna
Chandra Eluri and Shinjini Ganguli)
 ((Sourasis.Bose@thomsonreuters.com;))