DENVER AND SAN FRANCISCO — Two of the largest owners of industrial properties in the United States have entered into discussions regarding a potential merger. In joint press releases, Denver-based ProLogis and San Francisco-based AMB Property Corp. explained the deal would consist of a merger of equals, in which both company's stock would be combined in an all-stock, at-market transaction based on the unaffected trading price of both stocks prior to media reports of the possible merger. Neither company would comment further on the talks.
Following the news on Thursday, shares of AMB Property Corp. (NYSE: AMB)(http://www.google.com/finance?q=NYSE%3AAMB) rose to $36.01 per share, coming within pennies of its 52-week high), but ended the day at $34.01. Shares of ProLogis (NYSE:PLD)(http://www.google.com/finance?q=NYSE%3Apld) also rose, ending the day at $15.87.
If completed, the merger would create a titan in the industrial sector. ProLogis currently controls a portfolio of more than 435 million square feet of industrial space located across North America, Europe and Asia. AMB controls 158.4 million square feet of industrial space in 49 markets within 15 countries.
— Coleman Wood