Segro rebuffs third approach from US bidder worth £13.5bn

Segro’s US suitor has revealed a third takeover approach worth £13.5 billion has been rejected by the British warehouse property developer as it steps up its campaign to secure a deal.Prologis said it put forward a new cash-and-stock proposal to buy FTSE 100 firm Segro on July 16 worth £9.93 a share.This is higher than the £9.25 a share initial approach it made a month earlier worth £12.6 billion, and an improvement on the second proposal tabled on July 10, according to Prologis.It also marks a 34% uplift on Segro’s £7.42 closing share price the day before its takeover interest was made public, the group said.But San Francisco-based Prologis said Segro rebuffed its latest approach and is ramping up pressure on the UK firm’s board to enter discussions.It said: “Prologis believes the third proposal provides a compelling opportunity for both sets of shareholders and urges Segro shareholders to encourage their board to recommend the combination.”Prologis has now included a cash element for the bid of up to £2.7 billion – or 20% of the total amount.It is also looking at the possibility of having a secondary listing in London following any potential deal with Segro, “if there is sufficient investor demand”.“For any such secondary listing to be feasible, Prologis expects that Segro board engagement with Prologis will be required,” it said.Prologis said shareholders face a “clear choice”.“Prologis’ proposal provides upfront value, greater flexibility and long-term upside opportunity.“Segro’s standalone plan relies on flawless execution of a significant, long-dated development pipeline, substantial third-party funding and an unjustified valuation,” it said.Read MoreSegro last month said the initial approach “falls a long way short of Segro’s own views on value” and was “opportunistically timed” after recent share price pressure.The bid interest in Segro comes after Segro shares have dropped sharply since reaching a peak in 2021 above £14 a share, falling to just over £6 a share last year.Prologis has until 5pm on July 22 to make a firm bid for Segro or walk away under City takeover rules.