After Extra Space Storage (EXR) and Life Storage (LSI) announced a definitive all-stock, tax-free merger agreement that will see Life Storage shareholders receive shares representing a $145.82 per share price and 18.3% premium, BMO Capital analyst Juan Sanabria said the firm "can’t rule out a topping bid" given the strategic nature of the deal and its expectation for further storage consolidation to continue. Given the benefits of increased scale and diversification, the firm believes Extra Space could be in a position to improve its credit rating, added BMO, which has a Market Perform rating and $173 price target on Extra Space shares.
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Published first on TheFly
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