Street View: Life Storage's strong portfolio may force higher bid from Public Storage

Life Storage

06/02/2023 13:01

** Public Storage  PSA.N , the largest U.S. operator of
self-storage properties, on Sunday unveiled an $11 bln hostile
bid for Life Storage Inc  LSI.N , ratcheting up attempts to buy
its smaller rival after its earlier takeover attempts were
rebuffed.
    DESERVES A BETTER OFFER
    ** BMO will not be surprised to see PSA "sweeten" its offer
as the broker believes LSI has done a "fantastic job growing the
company and improving its portfolio/platform"
    ** J.P.Morgan suspects LSI's view of continuing down the
standalone path is rooted in the significant progress that co
has made with refining the portfolio in recent years, finding
creative ways to supplement growth, success on the acquisition
front, and its strong bottom line results
    ** Truist Securities believes there is a strong probability
of a slightly higher offer for LSI even when the valuation
premium looks significant
    ** Evercore ISI understands the rational behind the
potential deal as PSA needs to purchase large portfolios to
"move the needle"
 (Reporting by Subhadeep Chakravarty in Bengaluru)
 ((subhadeep.chakravarty@thomsonreuters.com))