Earlier in the day, business marketing materials provider RR Donnelley said it received a takeover offer of $10 per share in cash from an undisclosed strategic party as part of its go-shop process. On Nov. 3, Atlas agreed to acquire RR Donnelley for $8.52 per share in cash, but was outbid by Chatham.
In a Monday letter to RR Donnelley's board, Chatham said its sweetened buyout offer is supported by a debt commitment letter of up to $1.68 billion led by Jefferies Finance and a capital commitment letter of up to $350 million from Chatham. The offer also includes an agreement by Chatham to pay the $20 million termination fee and expense reimbursement to Atlas should RR Donnelley agree to a deal with Chatham instead of Atlas.
Chatham said it reserves the right to alter its offer if RR Donnelley does not declare the firm's offer a superior proposal by 5 pm ET on Dec. 1.
RR Donnelley shares were up 2.2% in extended trading.
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