40 North sweetens bid for WR Grace to $65 a share

US investment management company 40 North Management said on Monday that it has upped its offer for speciality chemical group WR Grace & Co to $65 per share in cash.

The company made a $60 a offer for Grace in November 2020 but this was rejected on the same day it was received on the basis that it undervalued the business and was "not a basis for further discussion". The initial offer represented a premium of 50% to the undisturbed share price, while the new one represents a 62% premium.

40 North said that since then, WR Grace has not engaged with the company or "made any public statement about opportunities Grace is pursuing to maximise value".

"Grace’s failure to even engage with us demonstrates a casual willingness to deprive shareholders of their most credible opportunity to realise immediate value," 40 North said. "Grace’s shareholders demand, and deserve, far better than this."

It added that its new proposal "delivers superior value to all shareholders - in stark contrast to Grace’s announced plans".