Logistics real estate giant Prologis has apparently been trying to buy Indianapolis-based Duke Realty in an effort to build a huge warehouse REIT since November of last year, and on May 3 Duke rejected an offer by Prologis.

Prologis, in a highly unusual move, on Tuesday made public a letter to Duke CEO James Connor offering to buy Duke for $61.68 a share, or approximately $24 billion, a big 29% premium. Prologis CEO and co-founder Hamid Moghadam explained that Prologis was making the letter public due to Duke’s intransigence in responding to Prologis takeover efforts.

While Duke shares jumped from their $48.14 closing price on Monday to a high of $55.26 on the news of the Prologis offer, the market is showing that it has a high degree of skepticism that a deal will be reached by failing to reach a price anywhere near the $61.68 Prologis offer. 

“We are confident that the proposed combination will be a win-win for our respective shareholders,” Moghadam said in a statement. 

“Prologis has a proven track record serving as a leader and innovator in our industry. We are known for providing exceptional service to customers and delivering superior value for our shareholders, including the shareholders of companies we have merged with or acquired in the past. We have no doubt that Duke Realty’s shareholders would similarly benefit from long-term value created by the combination of our companies.”

Duke hadn’t returned phone calls seeking comment or issued a statement as of early Tuesday afternoon.

The post Duke Realty Resisting Prologis Takeover Bid Despite Big 29% Premium appeared first on Connect CRE.

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