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Investing.com – RR Donnelley & Sons Co’s stock (NYSE:RRD) climbed 5% Thursday after the company got a sweeter offer than that made by affiliates of private investment firm Chatham Asset Management.
The stock touched $11.20 in the session underway, topping the latest cash offer of $11 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 was at the center of a bidding war between Chatham and Atlas (NYSE:ATCO) Holdings for more than a month until its board decided on Dec. 10 to go with the former. Chatham already owns around 15% stake in 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. This will amount to at least $32 million, according to the RR Donnelley release.
