Eminence Capital, a formerly leading shareholder in the UK packaging group RPC, has sold all its shares effectively making it irrelevant to an ongoing purchase process by New York-based Apollo Global Management.
Apollo made a “final offer” to buy RPC shares for 7.82 (€8.93) on 23 Jan, valuing the company at around €3.8bn.
At the time of the offer, the New York-based Eminence, which roughly held a 7% share in RPC, confirmed its support for the takeover in a letter of intent to Apollo.
However, over the last 10 days, Eminence has sold all its shares – an aggregate total of 2,422,370 controlled shares – on the London Stock Exchange and will now be unable to comply with its letter of intent, RPC said in a 12 Feb update.
RPC shares stood at £7.94 as of mid-day 12 Feb.
The move by Eminence is a blow to the takeover deal which has already fallen prey to doubt amid speculation about a potential offer by US-based Berry Global.
Late last month, following Apollo’s final offer, Berry requested due diligence information from RPC – although this is not tantamount to a solid fix.
Some of RPC small shareholders, including Royal London Asset Management and Aviva have voiced their discontent with the Apollo ‘low-ball’ offer.