Shares in Segro surged 16% after US giant Prologis went public with a possible offer for the FTSE 100 logistics property group, having seen its £12.6 billion all-share approach rejected.
The New York-listed warehouse landlord said it wrote to Segro's board on 16 June with an indicative proposal.
Under the terms, Segro shareholders would receive 0.084 new Prologis shares for each share held.
Segro rejected the proposal on Tuesday.
Based on Prologis' closing price that day and prevailing exchange rates, the proposal values Segro at 925p a share.
That represents a 24.6% premium to Segro's closing price of 742p the previous day.
It also matches the group's last reported net tangible assets per share at the end of 2025.
If completed, Segro shareholders would own about 10.5% of the enlarged group.
Prologis is the world's largest logistics real estate investment trust, with a market value of $139 billion and more than 1.2 billion square feet across 19 countries.
The San Francisco-based company said the combination would give Segro investors exposure to a larger global platform and access to greater financial resources.
It argued that Segro's growth had been constrained by its balance sheet and that its shares had traded at a persistent discount to the value of underlying assets.
Prologis pointed to its own stronger total shareholder returns over three and five years.
The US group said its greater firepower could unlock significant embedded value in Segro's development and data centre pipeline that the company could not realise on its own.
Prologis, which has until 22 July to make a formal offer, urged shareholders to press the board to engage in talks.
The approach lifted the wider property sector.
Among the blue-chips, Tritax Big Box climbed 5.4%, British Land 3.2%, Land Securities 3% and LondonMetric Property 2.8%.
On the FTSE 250, Big Yellow rose 4%, Great Portland Estates 3.75%, Hammerson 3.3% and Shaftesbury Capital 3%.
