FTSE 250 edges up as Segro jumps after rejected Prologis bid

London’s FTSE 250 rose 0.1% on Wednesday as Segro surged 15.6% after rejecting a $16.6 billion takeover approach from US logistics firm Prologis, supporting gains across UK property stocks. The FTSE 100 was little changed by 0755 GMT.

Real estate names led the market. The FTSE 350 real estate investment trusts index jumped 6% and the broader real estate sector rose 5.3%. Midcap property firms Harworth and Tritax each gained 5.6%. Segro was the top performer on the FTSE 100 and helped lift the midcap-dominated FTSE 250.

Prologis had urged Segro shareholders to press the landlord’s board to engage and argued Segro was undervalued. Segro rejected the approach, and investors drove its shares higher, extending gains to other listed property companies.

Other stocks outside property also moved. Liontrust climbed 12.2% after reporting that net outflows had slowed and that it was expanding overseas with higher institutional inflows. Homebuilder Berkeley rose 5.1% after flagging a strong demand outlook. Healthcare REIT Primary Health Properties gained 3% after announcing advanced talks with an unnamed investor on a joint venture focused on its private hospital assets.

Political and economic developments were also in focus. Prime Minister Keir Starmer resigned earlier in the week, triggering a leadership contest that could result in former Greater Manchester mayor Andy Burnham taking the role later this year. LSEG-compiled data showed markets were pricing in at least a 25 basis-point rise in UK borrowing costs before year-end.

Fresh UK data added to the backdrop. S&P Global’s flash composite purchasing managers’ index for June slipped to 49.4 from 49.7 in May, a 14-month low; any reading below 50 indicates a contraction in private-sector business activity.

The session saw a split between the two main UK equity benchmarks: the FTSE 100 was largely flat, while takeover interest in Segro and a broader rally in property shares helped the FTSE 250 post a modest gain.