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Thursday, Mar 28, 2024

Unsolicited Offer Sends Shurgard Shares Soaring

The board of Shurgard Storage Centers Inc. on Aug. 1 rejected an unsolicited bid from Public Storage Inc. to acquire the company in a stock swap. Glendale-based Public Storage had offered to acquire the company in a stock swap valued at about $53.40 per share or $2.49 billion, a price company officials said was a 14 percent premium over Shurgard’s stock price prior to the offer. But following the unsolicited offer, Shurgard’s shares soared $6.10 to close on Monday at $53 per share. Seattle-based Shurgard’s board rejected the offer saying it was not in the best interest of shareholders. “We believe our current strategic plan provides superior, compelling long-term value to our shareholders, and the proposal by Public Storage is clearly an opportunistic attempt to deprive our shareholders from fully realizing that long-term value,” said Charles Barbo, Shurgard chairman and CEO, in a statement Public Storage shares fell $1.15 to close Monday at $65.60 per share. Both Shurgard and Public Storage own and operate self-storage facilities.

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