Custodian shares rally after Urban Logistics bid for API

Shares in Custodian Property Income have rallied after listed peer Urban Logistics sought to derail its possible merger with Abrdn Property Income with its own takeover proposal. The share price movements have cast uncertainty on both takeover efforts, as well as whether a bidding war for API will begin or if either offer terms are final. Custodian was up 6.9% to 72.7p at market close today, in what appeared to be a “relief rally” emerging from the possible obstacle to its recommended all-share offer for API. Before today’s rise, shares in Custodian had dropped since its merger with API was agreed last month, when the all-share offer was valued at around £237m. Meanwhile Urban Logistics’ share price fell by 5.6% to 118.6p on the news of its indicative proposal to merge with API. That offer was worth around £226m. API’s stock edged up 2.1% to end the day at 53.1p. The FTSE 100 was down slightly at 7,661 points, while the FTSE 250 was broadly static at 19,116.