Plus   Neg

R.R. Donnelley Says Stockholder Rights Plan Does Not Inhibit Chatham's Dialogue

Responding to Chatham Asset Management's letter, R.R. Donnelley & Sons Co. (RRD) said that stockholder rights plan does not inhibit Chatham's dialogue with RRD.

R.R. Donnelley said it has met or communicated with representatives of Chatham on at least five occasions over the last couple of years. The adoption of the Plan does not preclude Chatham or other investors from engaging in uninhibited discussions with management, but since adoption of the Plan in August, the company has not heard from Chatham.

Earlier today, Chatham Asset Management, in its letter to RRD's Board of Directors, urged the company to immediately rescind the restrictive Rights Agreement or the "Poison Pill" adopted by the company as of August 28, 2019.

Chatham Asset Management, which owns about 12.9% of the company's outstanding common stock, said that the Poison Pill threatens the fundamental rights of stockholders to engage the Board and management on matters critical to the company's financial condition and prospects. The Poison Pill serves no legitimate corporate purpose and is contrary to the interests of both the Company and its stockholders.

Chatham said it is willing to meet with the Board to discuss Chatham's concerns about the Poison Pill, but it reserves the right to seek whatever remedies are available if its concerns are not resolved.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Lowe's (LOW) is temporarily increasing wages of its employees. The latest move by the hardware retailer is to help its employees cope with the economical effects caused by the ongoing COVID-19 pandemic. The company has hiked salary by $2 per hour for all full-time, part-time, and seasonal hourly associates,... Amazon.com Inc. (AMZN) Founder and CEO Jeff Bezos is donating $100 million to food banks across the U.S. to support poor people who cannot afford food during this coronavirus crisis. Bezos made a $100 million gift to Feeding America, one of the largest U.S. nonprofit focused on food security. Feeding... Facebook on Thursday shared an update on its $100 million small-business grants program announced in March, saying that it will provide $40 million in grants to 10,000 U.S. small businesses that were impacted by the coronavirus pandemic. In March, the social media giant said it is offering $100 million in cash grants and ad credits for up to 30,000 eligible small businesses.
Follow RTT