Warehouse firm Segro rebuffs third Prologis bid

Warehouse property developer Segro has rejected a £13.5 billion takeover approach from US rival Prologis.

San Francisco-based Prologis had tabled a new cash-and-stock proposal to buy the FTSE 100 firm worth £9.93 a share.

However, Segro has rebuffed the approach, saying it undervalues the firm and continues to be “opportunistically timed” after recent share price declines.

The move follows two previous failed bids for the operator – which has properties across London and the Midlands – with the latest offer higher than the £9.25 a share deal put forward last month.

Prologis said: “We believe the third proposal provides a compelling opportunity for both sets of shareholders and urges Segro shareholders to encourage their board to recommend the combination.”

Prologis has included a cash element for the bid of up to £2.7 billion – or 20 per cent of the total amount.

It is also looking at the possibility of having a secondary listing in London following any potential deal with Segro, “if there is sufficient investor demand”.

Segro previously said Prologis’ advances “fall a long way short of Segro’s own views on value”.

Andy Harrison, Segro chair, said: “The board does not believe Prologis’ latest proposal reflects the quality, scarcity or long-term prospects of Segro’s portfolio and platform, and has been rejected unanimously.”

Prologis has until 5pm on July 22 to make a firm bid for Segro or walk away under City takeover rules.

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