Indianapolis-based Duke Realty rejects $24 billion acquisition offer

Indianapolis-based Duke Realty Corp. Wednesday publicly rejected an almost $24 billion supply from San Francisco-base Prologis, Inc., which is searching for to amass the actual property firm. 

In a information launch, Duke Realty known as the supply “inadequate.”

“As now we have repeatedly made clear to Prologis throughout our discussions over the previous a number of months, in line with its fiduciary duties, our Board of Administrators has rigorously evaluated proposals from Prologis and we stay open to exploring all paths to maximise shareholder worth,” the corporate mentioned. “We consider the newest supply, nearly unchanged from its prior proposals, is inadequate in that regard.”

Duke Realty mentioned it had no additional touch upon the proposal at the moment.

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Prologis, an actual property funding firm centered on logistics and provide chain warehouses, revealed on Tuesday that it has hunted for months to purchase Duke Realty, an Indianapolis-based industrial-focused actual property funding belief.

In a separate information launch, the San Francisco firm mentioned it had despatched a letter to chairman and CEO James B. Connor, proposing to amass Duke Realty in an all-stock transaction. The letter was despatched after earlier discussions between the 2 corporations ended. 

Prologis mentioned it first despatched a letter to Duke Realty on Nov. 29 relating to the potential acquisition of the corporate. Over the course of 5 months, Duke Realty didn’t have interaction the supply. On Might 3, Prologis modestly elevated its proposal in a remaining try to privately attain an settlement on Prologis known as “a mutually helpful transaction.” 

Prologis mentioned Duke Realty rejected the supply that very same night.

Below Prologis’ newest proposal to Duke Realty, the Indianapolis firm’s stockholders would obtain 0.466 shares of Prologis frequent inventory for every share of Duke Realty frequent inventory they personal, in accordance with the press launch. The corporate mentioned its proposal is valued at $61.68 per Duke Realty share.

Prologis CEO and co-founder Hamid R. Moghadam known as the deal a “win-win” for each corporations’ potential shareholders. 

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“Prologis has a confirmed observe file serving as a frontrunner and innovator in our business. We’re recognized for offering distinctive service to prospects and delivering superior worth for our shareholders, together with the shareholders of corporations now we have merged with or acquired previously,” Moghadam mentioned within the information launch. “We’ve got little question that Duke Realty’s shareholders would equally profit from long-term worth created by the mix of our corporations.”

Duke Realty, nevertheless, feels in any other case. 

“Our enterprise is powerful, and now we have vital momentum, as evidenced by the file ranges of in-service and stabilized occupancy and appreciable leasing success of our growth pipeline,” the Indianapolis-based firm mentioned Wednesday. “We’ll proceed to drive sustainable worth creation and are assured in our potential to generate constant double-digit development in Funds From Operations, Adjusted Funds From Operations and dividends for our shareholders for years to return.”

Duke Realty’s inventory worth climbed by mid-afternoon Wednesday greater than 8% to $53.74.

Contact IndyStar reporter Alexandria Burris at aburris@gannett.com or name 317-617-2690. Comply with her on Twitter: @allyburris.