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40 North Raises Takeover Bid For W.R. Grace To $65 Per Share - Quick Facts

40 North Management LLC said Monday it has sent a letter to the board of directors of specialty chemicals producer W.R. Grace & Co. (GRA), increasing its offer to acquire all of the outstanding shares of common stock for $65 per share in cash, from the previous offer of $60 per share in cash. Shares of Grace are rising more than 11 percent in pre-market activity.

The offer represents a 62 percent premium over Grace's closing share price on October 13, 2020, the day prior to 40 North's regulatory filing disclosing the resignation of the 40 North representative from the Grace board of directors.

In its letter, 40 North said it demonstrated its commitment to shareholder value by also offering to include a "go shop" provision that would allow the Grace board of directors to solicit competing proposals following execution of a definitive purchase agreement.

In early November, Grace said its board rejected 40 North's $60 per share proposal as it believed that the proposal significantly undervalued the company, due to its strong prospects and its ongoing review of the alternative opportunities available.

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