Moore Corporation Limited Makes $56 All-Cash Offer for Wallace Computer Services

Strategic Insights -

Moore Corporation Limited, a global leader in delivering information handling products and services, has made a $56 all-cash offer for all outstanding shares of Wallace Computer Services. This offer represents an 84% premium over the share price on February 24, 1995, when Moore first wrote Wallace regarding a business combination. Moore believes its offer is full, fair, compelling, and reflects Wallace's current performance and future potential.

Key Takeaways:

  • Moore Corporation Limited has filed preliminary proxy materials with the Securities and Exchange Commission to solicit proxies from Wallace Computer Services' shareholders to elect Moore's nominees to Wallace's Board.
  • The tender offer includes a $56 all-cash offer for all outstanding shares of Wallace, representing an 84% premium over the share price on February 24, 1995.
  • Moore has the necessary financing in place, with over $1 billion of bank financing and additional cash on its balance sheet.
  • The U.S. Department of Justice has given Moore clearance under the U.S. antitrust laws to proceed with its tender offer.
  • Moore's nominees, Curtis A. Hessler, Albert W. Isenman III, and Robert P. Rittereiser, are committed to acting in the best interest of all Wallace shareholders and seeking to remove barriers to Moore's consummation of its tender offer.
  • Wallace's Board has refused to meet with Moore, opting to "no" to the offer and denying shareholders the right to accept it.
  • The Wallace Board has adopted a shareholders' rights plan, made it difficult for shareholders to take action at an annual meeting, and awarded a lucrative golden parachute to their Chief Executive Officer.

Statistics:

  • $56: the all-cash offer for all outstanding shares of Wallace Computer Services
  • 84%: the premium over the share price on February 24, 1995
  • $1 billion: the amount of bank financing Moore has in place
  • 20,000: the number of employees at Moore Corporation Limited
  • 59: the number of countries Moore serves
  • $2.4 billion: sales in 1994 for Moore Corporation Limited
  • US: the currency used for sales in 1994

Sources:

  • PR Newswire, "Moore Corporation Limited Makes $56 All-Cash Offer for Wallace Computer Services"
  • News Archive, "Moore Corporation Limited Prepares to Solicit Proxies from Wallace Shareholders"
  • Moore Corporation Limited Press Release, "Moore Corporation Limited Makes Offer to Acquire Wallace Computer Services"