Life Storage jumps on report Extra Space Storage considering takeover offer

Life Storage (NYSE:LSI) rose 2.5% on a report that competitor Extra Space Storage (NYSE:EXR) is evaluating a rival offer for the company after it rejected a bid from Public Storage (NYSE:PSA). Extra Storage fell 3.2%.

Extra Space (EXR) is working with an adviser on a potential offer, according to traders, who cited a Bloomberg report. Extra Space has a market cap of $22.6 billion, while Life Storage (LSI) is valued at $10.7 billion and Public Storage (PSA) has a market cap of $51.6 billion.

The latest report comes after Life Storage (LSI) shares gained 3.8% on Monday after the company filed an 8-K on Friday an amended severance agreement for executives in a change on control. 

The potential Extra Space (EXR) bid and revised severance plans come after Life Storage (LSI) last month rejected an ~$11 billion unsolicited bid from Public Storage (NYSE:PSA), saying the offer "significantly undervalues" the company as well as its prospects for future growth.

The revised language and possible new offer also follows after Life Storage (LSI) canceled an appearance at Citi's annual property CEO conference earlier this month.

A Citi analyst last month said Public Storage Inc. (PSA) has room to raise its offer for smaller self-storage competitor Life Storage (LSI) rejected it.