92.9 F
San Fernando
Monday, Mar 18, 2024

Public Storage Advances Bid

In a stepped up effort to acquire Shurgard Storage Centers Inc. officials at Public Storage today took their offer directly to the company’s shareholders, issuing a lengthy argument, that criticizes Shurgard’s management and operating results and projecting the financial benefits of a merger. Glendale-based Public Storage noted that its offer, at $53.40 per share, represents a more than 27 times multiple on Shurgard’s earnings and said that Shurgard shareholders would receive “shares in an entity with greater growth prospects, dividend sustainability and financial flexibility.” The document noted that occupancy rates at Public Storage were 91 percent versus 85 percent for Shurgard and Public Storage revenues per square foot averaged $10.39 versus Shurgard’s $10.12. The company also charged that Shurgard has missed its own earnings guidance each year since 2001. After opening at $56.13 per share, shares in Shurgard rose to $56.42 by midday. Public Storage stock shares rose to $69.21 after opening at $68.90. Several passes aimed at acquiring Shurgard have previously been rebuffed by the company’s board.

Featured Articles

Related Articles