Segro rebuffs £12.6bn approach from US rival in latest takeover tilt for UK firm

Dan Coatsworth, head of markets at AJ Bell, said: “The expansion of logistics property plays into data centres is taking a dull area to more interesting places and that’s evident in the takeover interest in Segro. “It’s hard to believe San Francisco’s Prologis would have been interested in Segro when it was simply focused on warehouses. Prologis specifically references the target’s pipeline of data centres in its rationale for the deal. “Prologis urging shareholders to encourage Segro to engage suggests the initial all-share bid submitted last week is just its opening salvo and that Segro’s rejection won’t be the final word in the story. “Whether an all-share bid will prove attractive to shareholders, given it would mean ending up with an investment in a much different entity, is open to question. Perhaps including a cash element would help smooth the passage of any deal. “A chunkier premium may also be required. Should Prologis succeed with its pursuit, it would represent yet another large-cap loss from the UK market and a diminution in its breadth and quality.”