Views Article – Sharenet Wealth

News, North America

Chatham sweetens offer for RR Donnelley amid takeover battle

Nov 29 (Reuters) – Chatham Asset Management on Monday raised its offer for RR Donnelley & Sons Co to $10.25 per share, hours after the printing company reaffirmed that it was sticking to a merger with investment firm Atlas 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.

(Reporting by Deborah Sophia in Bengaluru; Editing by Amy Caren Daniel)

© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.