Nip Impressions logo
Thu, Mar 28, 2024 08:03
Visitor
Home
Click here for Pulp & Paper Radio International
Subscription Central
Must reads for pulp and paper industry professionals
Search
My Profile
Login
Logout
Management Side
R. R. Donnelley Sends Letter to Chatham Asset Management Regarding Buyout

CHICAGO (From news reports) -- R. R. Donnelley & Sons Co. said in a filing Friday that it delivered a letter to representatives of Chatham Asset Management LLC in response to discussions regarding Chatham's non-binding, conditional indication of interest to buy it.

Chatham offered to buy Donnelley for $7.50 a share in October, but Atlas Holdings has since offered to buy the company for $8.52 a share.

Chatham owns about 15% of R.R. Donnelley's shares, and is its largest bondholder.

Donnelley said it is prepared to engage with Chatham regarding its interest in potentially making a binding proposal.

The company said it proactively reached out to Chatham with a confidentiality agreement that would enable it to provide Chatham with confidential information and have discussions regarding its indication of interest.

Donnelley said in its letter that the confidentiality agreement terms it is offering to Chatham are consistent with the terms that Atlas has already agreed to in its confidentiality agreement and are consistent with the terms required of all other parties that come forward during the go-shop period or thereafter.

Donnelley said it is ready to engage with Chatham and consider a proposal that its board of directors can compare with the agreement reached with Atlas, which equates to a total enterprise value of $2.1 billion.

The company also said Chatham's proposal is missing key substantive terms of a potential transaction, including the transaction structure, equity and debt financing sources, as well as evidence of financial wherewithal to complete a transaction.

You get lots of valueless email, sign up for newsletters that can promote your career.


Printer-friendly format

 





Powered by Bondware
News Publishing Software

The browser you are using is outdated!

You may not be getting all you can out of your browsing experience
and may be open to security risks!

Consider upgrading to the latest version of your browser or choose on below: