RRD Agrees To Be Acquired By Atlas; Chatham Boosts RRD Offer

Chatham Asset Management, LLC, which owns ~14.9% of RR Donnelley & Sons Co RRD, increased offer to acquire the remaining common stock of RRD to $9.00-9.50 per share in cash.
Previously, Chatham submitted an offer to acquire common stock of RRD not already owned by Chatham for $7.50 per share in cash, representing a 52.1% premium over the closing price of $4.93 per share on October 11, 2021.
Chatham sent a letter to RRD's Board mentioning, "We now have learned, through a leaked story to the Wall Street Journal, that RRD is prepared to announce a definitive agreement with Atlas Holdings ("Atlas") later this morning, whereby Atlas will acquire RRD's outstanding stock for $8.50 per share."
"We question how the Board could have undertaken a credible and fulsome strategic review process without any discussion or evaluation of our offer."
Meanwhile, RRD announced Wednesday morning that it agreed to be acquired by affiliates of Atlas Holdings LLC, in an all-cash transaction with a total enterprise value of approximately $2.1 billion.
RRD stockholders will receive $8.52 per share in cash for each share. The purchase price represents a premium of approximately 29.1% over RRD's closing price on November 2, 2021, and 72.8% over RRD's closing share price on October 11, 2021.
Price Action: RRD shares are trading higher by 41.8% at $9.36 during the premarket session on Wednesday.