Weinstein-Ackman Backed Consortium Increases Sculptor Capital Bid Challenging Rithm

In a new turn of events, Boaz Weinstein and his consortium of esteemed investors, including William Ackman and Marc Lasry, have enhanced their bid for Sculptor Capital Management SCU. 

The updated offer at approximately $13 per share surpasses their earlier proposal, potentially outpacing the standing agreement with Rithm Capital Corp RITM.

Weinstein's reinvigorated bid, marked at nearly a 60-cent increase from its initial proposal, places the esteemed investor and his coalition in a formidable position to seize control over Sculptor. 

The drama unfolds in the backdrop of Sculptor's tentative agreement from late July with Rithm Capital, a real estate investment firm, valuing the hedge fund at approximately $639 million, equivalent to $11.15 per Class A share, an 18% premium at the time, and allows current management, spearheaded by CEO James Levin, to maintain their roles.

However, the pendulum of favor seems to swing towards Weinstein's consortium, Wall Street Journal notes. 

Sculptor's hesitance towards the Boaz group's earlier proposal stemmed from the perceived elevated risk of the deal falling through. Yet, with modified terms and an increased offer, the landscape of negotiations may witness a significant transformation. 

The looming question remains whether the enhanced proposal will tilt the scales in favor of Weinstein and his high-profile coalition.

Price Action: SCU shares are up 7.12% at $12.19 on the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.