Big Yellow reveals it rejected a takeover approach as TWO activist investors pile on pressure for a sale
A Big Yellow self-storage unit, whose parent company has rejected two takeover approaches and now faces pressure from a second activist investor, Irenic Capital Management, which has built a 4% stake pushing for a sale.
Self-storage company Big Yellow has revealed it turned down a takeover approach in December, having decided the price on offer was too low, and confirmed it is considering "all options" amid mounting pressure from investors. A second activist, Irenic Capital Management, has reportedly accumulated a 4% stake and spent months pressing the board to pursue a sale. The shares have shed 42% over five years, falling to multi-year lows on the back of a sluggish housing market and weak UK growth.
Big Yellow had earlier broken off negotiations with Blackstone, the private equity giant, after that bid was similarly judged to fall short, with Ancora contending the company could now attract an even higher offer.
AJ Bell analysts cautioned that activist investors "only go public with demands if the door has been shut in their face", implying the board has been quietly resisting calls for change.
