Segro Rejects Prologis's $12.6 Billion Takeover Bid, Citing Undervaluation

Segro, a FTSE 100 company specializing in warehouses and data centers, has publicly rejected a £12.6 billion takeover bid from its US competitor, Prologis. The company's chairman, Andy Harrison, described the offer as "opportunistic" and an attempt by Prologis to "buy Segro on the cheap."

In a presentation to investors, Segro indicated its own valuation is closer to £18 billion. While not entirely ruling out a sale, the company stated it would only consider an offer at a "more attractive" level. Harrison explicitly dismissed the idea of engaging in takeover talks with Prologis at the current offer price.

Prologis had appealed directly to Segro's shareholders, urging them to pressure the board into accepting the deal. The US firm cited "lacklustre" earnings outlook for Segro and presented a tie-up as an opportunity to "capture and maximise the long-term value" of both companies. Prologis also highlighted the potential benefits for Segro shareholders, including access to its "global platform, fortress balance sheet and established strategic capital platform."

Prologis argued that its bid "offers Segro shareholders a substantial upfront premium and participation in a long-term value opportunity through ownership of the combined platform." Despite the rejection, Segro shares saw a modest increase of 0.4 percent, or 3.8 pence, to close at 868.8 pence following the exchange.