Prologis presses Segro to open takeover talks before July 22 deadline

Prologis is pressing Segro to open takeover talks over its £12.6 billion all-share proposal, renewing its public push on July 9 as the deadline for a firm offer approaches.

The U.S. industrial real-estate group said it remained ready to engage with Segro's board and argued that discussions would let the two companies explore the full potential of a merger and maximize long-term value for shareholders. Under U.K. takeover rules, Prologis must either announce a firm offer or walk away by July 22.

The offer and the deadline

Prologis's proposal values the London-listed warehouse landlord at about $16.9 billion. The terms imply 0.084 Prologis shares for each Segro share, or 925 pence per Segro share.

If the transaction were completed on those terms, Segro shareholders would end up owning about 10.5% of the combined company.

The deadline matters because the U.K. Takeover Panel requires a bidder to set out a firm offer within a fixed period after a public approach. If Prologis does not move by July 22, it would need to withdraw.

How the contest developed

Segro rejected the proposal in June, saying it was opportunistically timed and undervalued the business. That set the tone for the first phase of the contest, with both sides publicly defending their positions instead of entering negotiations.

On July 9, Prologis renewed its effort to bring Segro to the table. Segro responded the same day that the current proposal did not provide a basis for further engagement and urged shareholders not to take action.

The latest exchange keeps the takeover battle live, but it also underlines how little ground has been given so far by either side.

Segro's defence

Segro has argued that the bid does not properly reflect the value of its portfolio or its growth prospects. The company said it had made a strong start to the year and pointed to a record level of projects in its near-term development pipeline.

That defence matters because Segro is not just a warehouse landlord. Its portfolio and development pipeline give it exposure to logistics demand and to data-centre growth, two areas that have attracted sustained investor interest in industrial real estate.

The board's position is that the current offer misses that longer-term value. Prologis, by contrast, says a combination would allow both companies to unlock more value together than they could separately.

What happens next

The main question is whether Prologis raises its offer or formally launches a bid before July 22. Another is whether Segro's board softens its stance if pressure builds from shareholders who want the companies to negotiate.

For now, the takeover contest remains open, with the market waiting to see whether public pressure turns into talks or whether Prologis walks away at the deadline.