Public Storage makes hostile takeover bid for self-storage rival

• Public Storage already is the country's largest self-storage operator, with over 2,800 facilities in 40 states, while Life Storage ranks No. 4 with over 1,100 facilities in 37 states.

Backstory: Much of Public Storage's growth has been inorganic, kicking off with a $4.7 billion deal for Shurgard Storage Centers in 2006, and then followed by a stream of local and regional acquisitions.

Details: The deal would value Life Storage at $129 per share, which represents around a 17% premium to Friday's closing price. Also worth noting that Public Storage yesterday announced a common stock dividend increase, which effectively sweetens its takeover bid.

The bottom line: Life Storage on Dec. 29 told Public Storage that it was "not for sale," and then reaffirmed its position one month later. In a statement this morning, Life Storage says the new proposal "appears to be substantially similar in all material respects" to the prior offer, but adds that it will undergo a board review.