RRD - R.R. Donnelley Stock Jumps 38% on a Big Buyout Offer
Shares of R.R. Donnelley & Sons (NYSE: RRD) popped this morning after the printing and marketing company received a buyout offer from its largest shareholder for a price that represents a whopping 52% jump from the stock's Monday's closing price. R.R. Donnelley shares were trading up 38% as of 11:35 a.m. EDT.
In a regulatory filing dated Oct. 12, R.R. Donnelley revealed it has received a nonbinding offer from Chatham Asset Management to acquire the company at a price of $7.50 per share. The private investment firm that currently owns 14.9% shares and 41.4% debt in R.R. Donnelley has been chasing the company for more than a year now to restructure and unlock greater value for shareholders.
In late September, for example, Chatham Asset Management urged R.R. Donnelley to prevent the slide in the stock price and boost its value through a strategic business review and initiatives like selling noncore assets, reducing costs, better aligning compensation with performance, implementing a better capital allocation policy, and appointing a new chairman and members to the board of directors. The firm even said it believed these initiatives could boost R.R. Donnelley's share price to $13 or higher. Although the stock has recovered sharply since 2020, it had lost almost a quarter of its value since June before today's jump.
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R.R. Donnelley Stock Jumps 38% on a Big Buyout Offer