March 18, 2020 / 5:13 AM / 16 days ago

UPDATE 1-Public Storage abandons $1.25 bln bid for Australian peer

(Adds background on other bids, share movement)

March 18 (Reuters) - Australia’s largest self-storage operator, National Storage REIT, said on Wednesday that Public Storage decided not to pursue a takeover offer of $1.25 billion, because of market conditions caused by the coronavirus outbreak.

U.S.-based Public Storage, which offered A$2.40 a share for National Storage at the end of February, was the last suitor in a three-way race for the company after two other private equity firms pulled out.

New York-based private equity firm Warburg Pincus and China’s Gaw Capital Partners had each offered A$2.20 a share for the Brisbane-based firm.

Financial market volatility sparked by the coronavirus pandemic has led to a rethink of prices and contract conditions for potential Australian takeover deals, sources told Reuters earlier this week.

Shares of National Storage slumped as much as 30% to a more than five-year low after resuming trade following suspension earlier in the day pending the announcement. The broader market was about 5% lower.

Public Storage was not immediately available for comment outside its regular business hours.

($1=1.6620 Australian dollars)

Reporting by Shriya Ramakrishnan in Bengaluru; Editing by Clarence Fernandez and Christopher Cushing

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