Shares in the FTSE 100 listed UK property group Segro jumped 17 per cent after the company rejected a £12.6bn takeover bid from US rival Prologis.
Segro owns a portfolio of warehouses and data centres, mainly in the South East of England, and has benefited from the growth of online shopping.
The company’s board ‘unanimously and unequivocally rejected the proposal’, which it said fell ‘a long way short’ of own valuation and was ‘opportunistically timed’.
A statement from Segro said: “This has been accentuated by major geopolitical issues which have adversely impacted trading valuations across the UK and European real estate sectors relative to the US REIT sector.
“Segro has a clear strategy, supported by a strong balance sheet and a proven operating platform.
“Momentum is building in Segro’s occupational markets and the company has a large and attractive development pipeline, including an exceptional data centre platform, as well as a long track record of delivery.
“Accordingly, the board remains very confident in Segro’s ability to capture substantial value for its shareholders during the coming years.
“The announcement by Prologis does not amount to an announcement of a firm intention to make an offer. Save as set out in the Prologis announcement, there can be no certainty that any offer will be made for the company, nor as to the terms of any such offer should one be made.
“This announcement has been made without the consent of Prologis.”
Charles Hall, head of research at Peel Hunt, said: “The UK equity market is a strategic asset for the UK – it drives soft power, economic growth, wealth creation, savings and tax revenue.
“However, we are seeing companies being acquired at an alarming rate. In just six months there have been bids for five FTSE100 companies and eight FTSE250.
“This really does matter as we are losing jobs, tax revenues and the ecosystem of services that support companies.”
