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RR Donnelley Jumps as Party Trying to Outbid Chatham Raises Offer -Breaking

by Mike Robinson

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© Reuters.

By Dhirendra Tripathi

Investing.com – RR Donnelley & Sons Co’s stock (NYSE:) surged nearly 6% Thursday after the ‘strategic party’ that’s been trying to outbid private investment firm Chatham Asset Management raised its offer to buy the business communications provider.

According to Donnelley, the unidentified buyer is offering $11.50 per share for cash. The buyer had previously offered $11 a share, which was more than Chatham’s $10.85 a share.

Donnelley shares were at a record high of $11.31 as of Thursday morning ET (11:15 am ET).

RR Donnelley continues to recommend Chatham’s offer. The proxy statement for the deal will be submitted Friday. A shareholder vote is scheduled for February 23.

Chatham (NYSE:) Holdings was battling for the company’s business until Dec. 10, when its board decided to support the latter. Chatham holds a 15% share of the company.

If the company 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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