Shares of Duke Realty Corp. ERD,
shot up 8.5% in morning trading Wednesday, after the logistics real estate investment trust said the recent buyout proposal from fellow REIT Prologis Inc. PLD,
was “insufficient.” Prologis shares gained 2.5%. Prologis had said on Tuesday that it proposed to buy Duke Realty in a stock deal that valued Duke Realty shares at the time at $61.68, a 29% premium. That price implied a market capitalization for Duke Realty of about $23.7 billion. “As we have repeatedly made clear to Prologis during our discussions over the past several months, consistent with its fiduciary duties, our board of directors has carefully evaluated proposals from Prologis and we remain open to exploring all paths to maximize shareholder value, and we believe the latest offer, virtually unchanged from its prior proposals, is insufficient in that regard,” Duke Realty said in a statement. The day before Prologis’ latest bid, Duke Realty’s stock had closed at a 10-month low of $47.71, which implied a market cap of $18.3 billion. Duke Realty shares have dropped 18.0% year to date and Prologis shares have tumbled 23.8%, while the SPDR Real Estate Select Sector ETF XLRE,
has lost 18.0% and the S&P 500 SPX,
has shed 15.5%.