Public Storage Moves to Buy Shurgard

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According to the Wall Street Journal, Public Storage is poised to acquire Shurgard Storage Centers Inc. for about $3.2 billion. The amount was based on Friday's closing stock price of $63.42 and includes about $1.8 billion in debt.

Public Storage has been after Seattle-based Shurgard since August when Shurgard rejected the company's initial acquisition proposal. According to analysts, however, stockholders favored the deal; and Shurgard hired investment bankers in October to explore "strategic alternatives to maximize shareholder value." The present deal should give shareholders a price commensurate with Shurgard's current market value.

Talks to finalize the deal could carry throughout the week, though both parties hoped to come to terms as early as today.

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