Elliott Management Has Significant Stake in Public Storage -- 2nd Update
December 13 2020 - 7:06PM
Dow Jones News
By Cara Lombardo
Elliott Management Corp. has built a significant stake in Public
Storage and privately nominated six directors to the self-storage
giant's board, according to people familiar with the matter.
Representatives of Elliott and Public Storage, which has a
market value of $38 billion, have had multiple discussions in
recent weeks about changes that could be made at the company, the
people said.
It couldn't be learned exactly what Elliott is pushing for
Public Storage's management to do to boost its stock price, which
has stumbled in the past few years after a decadeslong march
upward. The company's shares are up around 3% this year, compared
with a roughly 13% rise in the S&P 500.
Public Storage on Sunday confirmed that Elliott Management had
submitted the names of six nominees and had been in discussions
with the company after The Wall Street Journal reported on the
talks. Public Storage also announced the retirements of three of
its longest-serving board members and named three new members.
Public Storage, recognizable by its bright orange logo, is a
Glendale, Calif., real-estate investment trust that specializes in
developing, owning and operating self-storage units. Founded in
1972, it was one of the earliest major self-storage companies but
has been under pressure as competition from the likes of Extra
Space Storage Inc. and CubeSmart heats up.
Elliott submitted its nominations to Public Storage within the
past few weeks, ahead of the Dec. 12 close of the four-week window
to do so, the people said. Elliott's six nominations account for a
minority of Public Storage's 13-person board.
Elliott, which has about $41 billion under management and is one
of the most feared activist hedge funds, has shied away from proxy
fights in recent years after bruising public clashes with companies
including Arconic Inc. and Athenahealth Inc. It has been conducting
more activist campaigns behind the scenes and, in the rare cases it
chooses to nominate directors, has tended to do so privately.
Write to Cara Lombardo at cara.lombardo@wsj.com
(END) Dow Jones Newswires
December 13, 2020 18:51 ET (23:51 GMT)
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