Prologis Inc.
PLD -4.74%
stated it has supplied to purchase
Duke Realty Corp.
DRE 2.96%
in a $23.7 billion deal, as one of many nation’s largest warehouse homeowners seeks so as to add extra space serving the e-commerce market.
Prologis operates warehouses all over the world for purchasers on the crux of on-line buying, together with Amazon.com Inc.,
Walmart Inc.
and
FedEx Corp.
An acquisition of Duke would mark Prologis’s largest acquisition so far, in keeping with FactSet, amid excessive demand for warehouse house wanted to retailer and fulfill orders.
Duke has to date turned a chilly shoulder to Prologis, which stated it first made a proposal to Duke in a letter despatched on Nov. 29. Since then, Prologis stated Duke Realty didn’t substantively have interaction with the provide. Prologis stated it raised its provide on May 3, however Duke Realty rejected the provide the identical day.
Prologis Chief Executive
Hamid Moghadam
stated in a letter to Duke that the corporate was making its provide public after a standstill in personal negotiations. “While we would prefer to continue working privately with you, as we have with others, to reach agreement for the benefit of your shareholders and ours, this approach is clearly not working,” he stated.
He added that the acquisition of Duke Realty, which owns about 160 million sq. ft of business actual property in 19 main U.S. logistics markets, would create a long-term strategic profit, regardless of “the current market volatility.”
A Duke Realty spokesman declined to remark.
Prologis stated its provide is valued at $61.68 per Duke Realty share, based mostly on Prologis’s closing value on Monday, and represents a premium of 29%. Prologis’s all-stock provide for Duke Realty would give Duke Realty shareholders 0.466 share of Prologis inventory for every share of Duke Realty that they personal.
Shares of Duke Realty lately traded 9.5% larger at $52.24 a share, paring good points of about 20% from earlier than the market opened. The hole between the place the inventory is buying and selling and the provide value suggests traders are skeptical that Duke Realty will settle for the bid.
Prologis inventory was down 5.1% at $125.62 a share in late morning buying and selling.
Write to Will Feuer at [email protected]
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