Public Storage Eyes Shurgard Merger

Public Storage, a Glendale, Calif.-based self-storage real estate investment trust, is looking to acquire Seattle-based Shurgard Storage Centers, another self-storage REIT, in a merger proposal that Shurgard has rejected.Public Storage said it has made an offer in which each share of Shurgard would be exchanged for 0.80 shares of Public Storage, which would value Shurgard common shares at $53.40. This represents a 14% premium over Shurgard's closing stock price on July 29, Public Storage said. Such a merger would create an entity with a total enterprise value of about $50 billion, according to Public Storage. Shurgard said in a written release that its board of directors has evaluated the proposal and rejected it, believing it to be "good for Public Storage, but bad for Shurgard." Speaking in a teleconference about future moves relating to the offer, Public Storage management said they are "well-advised and familiar with all of our options."