SEGRO PLC (LSE:SGRO) shares jumped as US logistics property giant Prologis Inc (NYSE:PLD) raised its bid in what it described as a "best and final" offer, and called for a longer deadline for negotiations.
The revised proposal values the FTSE 100 property group at around £14 billion, with shareholders offered 0.092 new Prologis shares for each Segro share – a 9.5% improvement on its initial approach – plus a £3.5 billion partial cash alternative.
Based on the closing share price of the US company, the offer values Segro at 1,031.7p per share, representing a 39% premium to Segro's closing price before the offer period began and a 14% premium to its adjusted net asset value at the end of June.
On Monday, Segro's board rejected a third approach priced at 993p a share, or about £13.5 billion, after meeting members of Segro's management in London over the weekend.
Yesterday, Prologis released a combative statement, saying no credible path to a recommended deal had been found, and accusing the Segro board of relying on an aspirational valuation built on unrealistic assumptions.
Prologis chief executive Dan Letter said the company had responded to shareholder feedback by improving its proposal but stressed the revised terms represented its final offer.
"We have listened to feedback from shareholders and this morning, we have improved our proposal to make a compelling offer to the Segro board," he said.
The US group has also asked Segro to seek an extension to the "put up or shut up" deadline, currently set to expire at 5pm today, to allow more time to negotiate the remaining terms of a recommended deal.
If completed, existing Segro shareholders would own about 8.9% of the combined company. Prologis also said it would explore a secondary listing in London if there is sufficient investor demand.
