Stock Groups

RR Donnelley Jumps on New Bid Trumping Chatham Offer -Breaking

by Mike Robinson

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© Reuters.

By Dhirendra Tripathi

Investing.com – RR Donnelley & Sons Co’s stock (NYSE:) climbed 5% Thursday after the company got a sweeter offer than that made by affiliates of private investment firm Chatham Asset Management.

Stock reached $11.20 during the ongoing session. That’s higher than the $11 latest cash offer made by a “strategic” party.  

For now though, the company said it is committed to Chatham’s $10.85 per share offer even as its board feels the unsolicited non-binding proposal from the strategic party could reasonably be expected to lead to a “superior proposal.”

“At this time, the board has not determined that the strategic party proposal constitutes a superior proposal,” RR Donnelley said in a release.

RR Donnelley had been at the centre of a bidding conflict between Chatham (NYSE:) Holdings, and Atlas Holdings, for more than a year before the board decided Dec. 10, to choose the latter. Chatham currently holds around 15% of the company.

If RR Donnelley does agree for purchase by the strategic party, the latter will pay both the expense reimbursement and the Atlas termination fee refund to Chatham on the company’s behalf. According to the RR Donnelley press release, this will be at least $32million.

 

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