R.R. Donnelly accepts higher offer from Chatham in bidding war

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R.R. Donnelley & Sons Co. said late Tuesday it’s flipping sides in a bidding war, terminating a previously announced merger agreement.

R.R. Donnelley
RRD,
-0.54%
said it is accepting an offer of $10.85 a share in cash from Chatham Asset Management to acquire the company, for a total enterprise value of about $2.3 billion and total equity value of about $897 million.

Just last week, the business communications services and marketing company said it accepted a $10.35 a share offer from Atlas Holdings LLC, a markup from a previous offer of $8.52 a share in late November.

R.R. Donnelley said it terminated the agreement with Atlas after Atlas waived its right to renegotiate after Chatham’s offer. Back in October, Chatham had offered $7.50 a share for R. R. Donnelley.

Shares of R.R. Donnelley fell 2.8% after hours, following a 0.5% decline to close the regular session at $11.01. Shares are up a whopping 584% over the past 12 months, compared with a 27% gain in the S&P 500 index
SPX,
-0.75%.

source

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