Life Storage ( NYSE: LSI ) jumped 11% after Public Storage ( NYSE: PSA ) made an unsolicited $11 billion takeover offer for the rival self-storage company. Public Storage ticked down 0.2%.
Under the proposed transaction, holders of Life Storage ( LSI ) would receive 0.4192 shares of Public Storage ( PSA ) common stock for each Life Storage share or unit they own, or $129 a share, representing a 17% premium to Life Storage's closing price on Friday, according to PSA statement on Sunday.
Public Storage ( PSA ) on Sunday publicly revealed the unsolicited $11 billion all-stock offer for Life Storage ( LSI ) after it had made a few private attempts to engage with the smaller self-storage competitor.
Life Storage ( LSI ) confirmed in a press release Sunday that it received the bid from Public Storage ( PSA ) and that it will review the proposal, though the company noted that the offer received appeared to be "substantially similar in all material respects" to a privately submitted proposal previously reviewed by LSI's board.
A Truist analyst on Sunday wrote that there's a "strong probability" that Public Storage ( PSA ) could "slightly" increase its offer for Life Storage ( LSI ).
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Why did Life Storage stock jump up today? Received bid from Public Storage