H.B. Fuller Co.'s board has rejected an unsolicited offer from Ancora Holdings Group worth up to $1.2 billion for its Building Adhesive Solutions business, according to Bloomberg, citing people familiar with the matter. The board determined that Ancora's proposal materially undervalued the division and failed to adequately reflect its future growth prospects, the people said. Directors also reportedly concluded that the bid did not recognise the strategic importance of Building Adhesive Solutions within H.B. Fuller's wider adhesives portfolio and lacked sufficient information from Ancora to constitute an actionable proposal. Ancora responded strongly to the board's decision, arguing that H.B. Fuller dismissed its proposal without engaging with the investment firm, and an Ancora spokesperson told Bloomberg that rejecting the offer without discussions was irrational and reinforced the CEO and board's proclivity for entrenchment. The spokesperson also suggested that other parties are interested in both the Building Adhesive Solutions division and H.B. Fuller as a whole, and warned that if the board pursued discussions with other potential buyers rather than Ancora, it would only make it easier to replace derelict directors.
H B Fuller CompanyBoard rejected Ancora's $1.2B bid, which undervalued the division, but the rejection may signal entrenchment and potential loss of a premium offer.
