Why R.R. Donnelley & Sons Stock Jumped 10% at the Open Today
Shares of communications services company R.R. Donnelley & Sons (NYSE: RRD) rose roughly 10% in early trading on Monday. The big news here came out before the market opened, but it really takes the story all the way back to Nov. 3.
Early in November, R.R. Donnelley agreed to be taken private by affiliates of Atlas Holdings. According to the deal, shareholders would receive $8.42 per share in cash for each R.R. Donnelley share they own. However, as is often the case, the company was allowed to seek out better offers. On Nov. 16, it got one from Chatham Asset Management for $9.10 per share in cash. That was an 8% improvement, but there's a hurdle here because R.R. Donnelley has to pay a breakup fee to Atlas of $20 million if it takes on another partner. Chatham has agreed to pay that fee, with some conditions.
Image source: Getty Images.
Source Fool.com
