Security Capital Seeks Storage USA Shares
A Chicago real estate company that owns nearly half the stock in Storage USA Inc., one of the nation’s largest self-storage companies, is proposing to buy the remaining shares for about $1 billion.
The proposal announced Tuesday by Security Capital Group Inc. to spend $42 a share for outstanding shares in Memphis, Tenn.-based Storage USA also would require the Chicago company to assume about $871 million of debt and Storage USA’s preferred stock.
Security Capital said it wouldn’t restrict Storage USA from seeking a competing bid. If a better one is found within 45 days, the Chicago company said it will vote its controlling stake in favor of that bid.
Investors, believing that might happen, helped shares of Storage USA increase $3 to close at $42.80 on Tuesday in NYSE trading, and to rise 9 cents to $42.89 on Wednesday. Security Capital shares increased 57 cents to $18.65 on Tuesday but fell 6 cents to $18.59 on Wednesday, also on the NYSE.
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