Chatham sweetens offer for RR Donnelley amid takeover battle
Reuters
_news_article_title_published Nov 29, 2021 07:19PM ET
(Reuters) - Chatham Asset Management on Monday raised its offer for RR Donnelley (NYSE:RRD) & Sons Co to $10.25 per share, hours after the printing company reaffirmed that it was sticking to a merger with investment firm Atlas (NYSE:ATCO) Holdings.
Shares of RR Donnelley rose 2.3% to $10.45 in extended trading.
Chatham, which owns a 14.9% stake in RR Donnelley making it the largest shareholder, earlier this month had offered to acquire the remaining stock in the company for $9.10 per share.
RR Donnelley agreed to be taken private by Atlas for $8.52 per share in cash earlier this month, valuing the company at about $2.1 billion.
Earlier in the day, RR Donnelley said it had also received an alternative proposal from an unnamed party offering to buy the company for $10.00 per share in cash, but the printer maker continued to recommend the deal with Atlas as its go-shop period comes to an end.
The go-shop period allows the target company in an M&A agreement to seek out competing bids even after it receives an offer from the acquirer.
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_newTouch_News_Source: Reuters
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