PUBLIC STORAGE PRESSES OFFER SHURGARD DECLINED UNSOLICITED $2.39 BILLION.Byline: Gregory J. Wilcox Staff Writer GLENDALE - Public Storage Inc. on Monday trumpeted its unsolicited un·so·lic·it·ed adj. Not looked for or requested; unsought: an unsolicited manuscript; unsolicited opinions. unsolicited Adjective $2.39 billion bid made last month for rival Shurgard Storage Centers Shurgard Storage Centers, Inc. was a Real estate investment trust (REIT) based in the Cascade neighborhood of Seattle, Washington. Its predecessor company, Capital Northwest Management Corporation, was founded in 1972 in Olympia, Washington by Charles K. Barbo and Donald B. Inc. after that company's board nixed the offer. Glendale-based Public Storage said its offer represents a 14 percent premium on Shurgard's closing stock price on Friday. After the news, Shurgard shares surged $6.10 to $53, raising the value of Public Storage's offer to about $2.5 billion. Shares of Public Storage fell $1.15 to $65.60. Public Storage rules the self-storage business while Seattle-based Shurgard is No. 2. Earlier this summer Public Storage executives went to Seattle to try to win over Shurgard's top management and followed with an offer letter on July 8. Last Tuesday Last Tuesday is a Christian melodic punk rock band hailing from Harrisburg, Pennsylvania. They played their final show on March 10th, 2007. Last Tuesday was formed in 1999 in Harrisburg, P.A. , Charles K. Barbo, Shurgard's chairman and chief executive officer, replied with a two-paragraph letter saying the offer was not in his company's best interest. ``The board unanimously decided that the company is not for sale and therefore rejected your proposal,'' he wrote. That stance was reiterated in a news release issued Monday and company spokesman Roland Tomforde declined further comment. So Public Storage took the offensive and targeted Shurgard shareholders in a conference call with Wall Street analysts. ``We are hoping Shurgard shareholders will see the benefit of this transaction and communicate their views to the board of directors and the senior management of the company,'' said Ronald L. Havner Jr., Public Storage's chief executive officer. Havner also said that he prefers to work cooperatively with Shurgard. ``We would like to commence discussions with Shurgard immediately.'' Public Storage's management believes the benefits of a merger are too compelling to ignore. They include: --A company valued at $15 billion with annual revenues in excess of $1.5 billion. --Ownership interest of more than 2,000 storage locations with 128 million square feet of rentable space in 38 states and seven European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. nations. --Opportunity to cut costs by eliminating duplicate DUPLICATE. The double of anything. 2. It is usually applied to agreements, letters, receipts, and the like, when two originals are made of either of them. Each copy has the same effect. expenses. Analyst Jeffrey J. Donnelly at Wachovia Securities Wachovia Securities, located in Richmond, Virginia (soon to be moved to St. Louis), is the third largest brokerage firm in the United States as of 2006 with $689 billion retail client assets under management. It is a subsidiary of Wachovia Corporation. said in an e-mail that Public Storage has given Shurgard this kind of bear hug Bear Hug An offer made by a company to buy the shares of another company that is too high for the board of the target firm to refuse. Notes: If the target company says the merger is okay but they want a higher price, it is called a "teddy bear hug. before and been rebuffed. ``The offering terms appear to be reasonable in out view,'' he wrote. ``The acquisition of Shurgard - owner of a smaller but very high quality portfolio - would further cement cement, binding material used in construction and engineering, often called hydraulic cement, typically made by heating a mixture of limestone and clay until it almost fuses and then grinding it to a fine powder. Public Storage's dominance of this industry.'' Gregory J. Wilcox, (818) 713-3743 greg.wilcox(at)dailynews.com CAPTION(S): box Box: UNWELCOME OFFER SOURCE: Daily News research |
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