Last week, Public Storage said its bid was based on informationavailable to the public and asked Shurgard to provide additionalnon-public information to support its assertion that its offer wastoo low. Public Storage also said in the letter that shareholderswho collectively own more than 50% of Shurgard shares have toldPublic Storage they "strongly endorse" the idea of a merger betweenthe companies, though Public Storage did not say whether theshareholders strongly endorse the current deal terms.

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"We suspect you have heard the same message, too," states theletter signed by Public Storage chief executive Robert Havner. "Aswe have repeatedly stated, it is our preference to enter into anegotiated transaction with Shurgard. This will save both of ourcompanies the time and expense of special meetings, proxy contests,litigation, unilateral exchange offers and other expensive andtime-consuming measures."

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In its presentation, Shurgard says the company's not for sale atPublic Storage's offer price because its growth prospects in boththe US and Europe are superior to PSA's. Moreover, it says a mergerwould reduce Shurgard's net asset value and its FFO growth.

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