FINWIRES · TerminalLIVE
FINWIRES

UK's Segro Rejects Prologis' Takeover Bid for Third Time

By
UK's Segro Rejects Prologis' Takeover Bid for Third Time

Segro's (SGRO.L) board unanimously rejected Prologis' (0KOD.L, PRLD.VI) revised takeover bid yet again, saying the latest and previous two proposals were "opportunistically timed" to take advantage of a "dislocated" share price.

US-based logistics real estate company Prologis submitted a third and improved proposal of 0.0890 new share for each share of the UK warehouse owner and developer, along with a partial cash alternative of up to 2.7 billion pounds sterling at a fixed price of 10 pounds per Segro share, according to a Monday release. The cash alternative represents up to 20% of the total consideration.

The latest proposal, which values Segro at 13.5 billion pounds, follows Prologis' earlier offers of 0.0875 per share and 0.0840 per share.

In a separate same-day release, Segro said its board "carefully reviewed" the offer and concluded that the company's own "compelling growth strategy and standalone prospects underpin superior value creation versus the Further Revised Proposal."

"The Board does not believe that Prologis's latest proposal to acquire SEGRO reflects the quality, scarcity or long-term prospects of SEGRO's portfolio and platform and has been rejected unanimously by the Board. The Board is seeking to maximise value for shareholders and would further engage on any proposal which appropriately reflects the considerable embedded value and prospects of our business," Segro Chairman Andy Harrison said in a statement, adding that the company will continue to focus on executing its strategy.

Prologis, meanwhile, urged Segro shareholders to encourage the board to recommend the two companies' potential combination, arguing that Segro's stand-alone case "doesn't add up" and its assessment of value is "unrealistic."

As of late Monday morning, Segro's shares were trading marginally lower in London.

Related Articles

HDFC Bank's Fiscal First-Quarter Profit Rises 5% Despite Margin Pressures
US Markets

HDFC Bank's Fiscal First-Quarter Profit Rises 5% Despite Margin Pressures

HDFC Bank (NSE:HDFCBANK, BOM:500180) reported a 5% increase in net profit for the fiscal first quarter ended June 30 to 190.60 billion rupees from 181.55 billion rupees a year earlier.Earnings per share rose to 12.35 rupees from 11.79 rupees, according to filings with the Indian bourses on Saturday.Net revenue for the quarter, however, shrank to 463.6 billion rupees from 531.7 billion rupees. The year-ago figure included 91.3 billion rupees in transaction gains from the IPO of its subsidiary, HDB Financial Services (NSE:HDBFS, BOM:544429), HDFC said.Net interest income in the latest reporting period edged up 6.7% to 335.3 billion rupees. Net interest margin shrank to 3.26% on total assets from 3.4% a year prior.On the earnings call, CEO Sashidhar Jagdishan said the lender faced "certain challenges over the last four months."CFO Srinivasan Vaidyanathan told analysts that the bank does not expect net interest margins to improve quickly, citing the country's liquidity scenario and the elevated costs of non-retail deposits."Non-retail deposit costs have been elevated. And similarly, the borrowing mix has not come off yet. We still remain at about 11%. That continues to be a space that we keep watching. But again, it doesn't change in the short term and doesn't change in a hurry," Vaidyanathan said.During the call, Deputy Managing Director Kaizad Bharucha said the bank had disbursed close to 140 billion rupees under the government's Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 scheme as of June 30."I believe that's amongst the highest in terms of the participating banks because of the spread of customers and the quality of the portfolio that we have out over there," Bharucha said.

BOM:500180BOM:544429NSE:HDBFSNSE:HDFCBANK
Update: Equities Fall Amid Netflix Sell-Off; Oil Climbs as Middle East Tensions Rise
US Markets

Update: Equities Fall Amid Netflix Sell-Off; Oil Climbs as Middle East Tensions Rise

(Updates with market moves at the end of the day and weekly index changes.)US equities declined Friday as Netflix (NFLX) shares sold off, capping a losing week for Wall Street amid renewed tensions in the Middle East that drove oil prices higher.The Nasdaq Composite shed 1.4% to close at 25,520.24, while the S&P 500 dropped 1% to 7,457.69. The Dow Jones Industrial Average lost 0.8% to settle at 52.146.42. Barring energy, all sectors ended in the red, led by communication services.Netflix (NFLX) shares slumped 7.3% Friday, among the worst performers on the S&P 500. The steaming giant's move to annual engagement reporting and its soft US and Canada revenue in the second quarter apparently weighed on the stock, BofA Securities said in a note.Netflix's June-quarter revenue fell short of Wall Street's estimate, results released late Tuesday showed.West Texas Intermediate crude oil was up 4% at $82.14 a barrel in Friday late-afternoon trade, while Brent rose 4.3% to $87.82. The WTI was headed for its biggest weekly gain since early March, while Brent was on track for its steepest weekly rise since mid-April.Iran has hit Jordan, Kuwait and Qatar, while Tehran also claimed it targeted US military assets in Oman and Bahrain, CNN reported Friday."Energy and refined fuel flows through the Strait of Hormuz continues to slow amid the escalating conflict between the US and Iran," Saxo Bank said in a report. "The renewed disruption has interrupted the recent recovery in regional supply, reviving concerns about tighter global markets."US Treasury yields were mixed, with the two-year rate up 2.7 basis points at 4.18% and the 10-year rate falling 1.8 basis points to 4.55%.This week, the Nasdaq and the S&P 500 fell 2.9% and 1.6%, respectively, following their two consecutive weekly gains. The Dow dipped 0.9% to log its second straight weekly decline."Beyond concerns about the latest flare-up in oil, arguably the bigger concern for policymakers is the inflationary impact of the boom in (artificial intelligence) spending," Douglas Porter, chief economist at BMO Financial Group, said in a report Friday.In other corporate news, Intuitive Surgical (ISRG) shares sank 14% Friday, the steepest decline on the S&P 500. Growth in the company's da Vinci robotic surgery procedures in the US moderated due in part to changes in Affordable Care Act premium subsidies, even as it reported better-than-expected quarterly results late Thursday.SpaceX (SPCX) share fell 5.4%. The company's Starship rocket triggered an "automatic launch abort," with the next launch to be rescheduled possibly in a few days, SpaceX Chief Executive Elon Musk said in a Thursday post on X.Travelers (TRV) shares jumped 9.2%, the top gainer on the S&P 500 and the Dow. The property and casualty insurer's second-quarter earnings unexpectedly increased year over year, while its written premiums came in ahead of market estimates.In economic news, US consumer sentiment this month hit its highest level since February amid easing price pressures at the pump, though renewed tensions in the Middle East could weigh on confidence going forward, according to a survey by the University of Michigan.US housing starts increased more than expected last month amid a sharp jump in multi-family projects, government data showed.Gold was up 0.7% to $4,020.50 per troy ounce, while silver gained 0.5% to $56.44 per ounce.

Dow JonesNasdaq CompositeS&P 500$ISRG$NFLX$SPCX$TRV
Lodging Sector Set For Second-Quarter Beats Amid US RevPAR Acceleration, Morgan Stanley Says
US Markets

Lodging Sector Set For Second-Quarter Beats Amid US RevPAR Acceleration, Morgan Stanley Says

Most lodging companies are poised to report second-quarter results above Wall Street's projections, as growth in revenue per available room in the US likely accelerated sequentially, Morgan Stanley said in a Friday report.Year-over-year growth in US revPAR -- a key performance indicator in the hospitality industry -- is estimated to have picked up by more than 200 basis points to about 5.5% in the second quarter from the prior three-month period, Morgan Stanley said.US revPAR benefitted from the FIFA World Cup, which bolstered June, while the industry began lapping the "Liberation Day," when President Donald Trump imposed sweeping tariffs in April 2025, the brokerage said. "Accelerating US trends should outweigh weaker China and Middle East pressures, leading to upside in the (quarter)," Morgan Stanley said.The investment firm expects sector-wide upward revisions to full-year 2026 guidance.Morgan Stanley revised its price targets higher for several lodging companies ahead of the release of second-quarter results, including overweight-rated names such as Wyndham Hotels & Resorts (WH), Hyatt Hotels (H), and Travel & Leisure (TNL).Price targets moved to $93 from $89 for Wyndham, to $218 from $208 for Hyatt and to $83 from $78 for Travel & Leisure.The brokerage also raised its price targets on Hilton Worldwide (HLT), Marriott International (MAR), DiamondRock Hospitality (DRH), Pebblebrook Hotel Trust (PEB) and Park Hotels & Resort (PK), among others.Price: $12.49, Change: $+0.21, Percent Change: +1.67%

$DRH$H$HGV$HLT$MAR$PEB$PK$TNL$WH