Segro's board has agreed to back an increased takeover bid from Prologis, valuing the London-based logistics warehouse operator at £14 billion, or $18.7 billion. The San Francisco-based real estate investment trust put forward its best-and-final offer early Wednesday, which increases the cash payout option for Segro shareholders to up to 25% from a previous cap of 20%. Under the new terms, Segro stockholders would receive 0.092 new Prologis shares for each share held, representing a 9.5% increase over Prologis' initial June 24 offer and a 47% premium to Segro's three-month weighted average share price. The UK Takeover Panel has granted an extension, giving Prologis until August 12 to finalize its intentions. Segro shares closed up 2.9% on the London Stock Exchange and have risen 21% since the first bid, while Prologis shares were off 3.1%.
Segro PlcSegro's board agreed to an increased takeover bid at a 47% premium, driving shares up 2.9%.
Prologis IncPrologis is making a large £14 billion acquisition, which is dilutive and caused its shares to fall 3.1%.