From Home Furnishing Business
Rent-A-Center Directors Reject Takeover Bid
In a Securities and Exchange Commission filing, Rent-A-Center said Vintage offered $15 per share for 100% of the company’s stock in a private letter dated June 20. Rent-A-Center’s board formally rejected the bid on July 5 “following a thorough review” with the assistance of its financial and legal advisors, the filing said.
“The Board determined that Vintage’s proposal significantly undervalues the company and that the strategic plan currently being implemented by Rent-A-Center positions the company to deliver greater value to its stockholders than Vintage’s inadequate and opportunistic proposal,” the company said in the filing.
It wasn’t immediately clear if the company is involved in further negotiations with Vintage Capital.
Earlier this year, activist shareholders led by the hedge fund Engaged Capital ousted three Rent-A-Center directors, including longtime chairman Mark Speese.