Life Storage Inc., which operates more than 1,100 self-storage properties, rejected an $11 billion bid from Public Storage, saying the offer “significantly” undervalues the company.
(Bloomberg) — Life Storage Inc., which operates more than 1,100 self-storage properties, rejected an $11 billion bid from Public Storage, saying the offer “significantly” undervalues the company.
“Life Storage believes the proposed transaction is an opportunistically timed attempt to transfer Life Storage’s upside potential to Public Storage’s shareholders,” the company said Thursday in a statement.
Public Storage unveiled its bid earlier this month. Life Storage responded, saying it would review the proposal which it noted was “substantially similar” to an earlier offer it had spurned.
Life Storage Chief Executive Officer Joseph Saffire said the company has expanded its operating margins and maintains a “strong” balance sheet. Life Storage said it will discuss the decision, as well as the company’s financial outlook, during its rescheduled earnings call on Feb. 24.
“The board is always open to and regularly evaluates opportunities to enhance shareholder value and will consider any proposal that appropriately values the company and its prospects,” said Mark Barberio, non-executive chairman of Life Storage.
A Public Storage spokesperson said it would continue to pursue a transaction and Life Storage’s openness to discussions was a welcome change from its previous comments.
(Updates with Public Storage comment in last paragraph)
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