ETF News

UPDATE 1-Elliott confirms Public Storage board nominations, urges growth moves

(Updates with share movement, background)

Dec 14 (Reuters) - Activist investor Elliott Management disclosed a stake in Public Storage on Monday and urged it to evaluate its growth strategy, after nominating six members to the self-storage company’s board.

The statement by Elliott follows the company’s disclosure on Sunday of talks between the two sides and that the hedge fund had confidentially submitted the names of six nominees for election to the company’s board of trustees.

Activist investors typically buy stakes in companies, and then push their managements to make changes, such as buying back stock, selling poorly performing units, or restructuring the business. The most effective way for an activist to effect change is through representatives on the board of directors.

Elliott called on the company, a real estate investment trust (REIT) that owns and operates self-storage facilities, to increase investment in its stores, employees and on customer experience for faster growth.

Elliott said the company’s current board did not meet the standards of good governance as it confirmed nominating candidates to its board.

Public Storage shares were up about 5% at $227.97 in morning trade and had gained 3.6% this year as of Friday’s close. Peers Extra Space Storage Inc and Life Storage Inc have risen 5.4% and 9.8% respectively, this year. (Reporting by Sanjana Shivdas in Bengaluru; Editing by Vinay Dwivedi and Patrick Graham)