Proactive Investors - Paramount Global (NASDAQ:PARA) shares moved higher after investment firm Apex Capital Trust announced it had made an up to $43 billion competing bid for the entertainment company.
Paramount has a 45-day “go-shop” period after it struck a merger deal with Skydance Media during which it can receive other offers.
It has until August 21, 2024, to identify and evaluate competing offers to Skydance’s deal.
“We are confident in the expertise of the investment firm and their willingness to move expeditiously and efficiently to evaluate this offer and submit it to the Special Committee of the Board of Paramount as a proposal that is substantially superior to the Skydance deal,” Apex Trust general counsel Tatiana Logan said in a statement.
“Paramount and its assets are a national treasure, and we intend to treat them accordingly. Paramount's global future is bright, but it requires resources, which we have and are enthusiastic to deploy, making it a win-win situation for all of Paramount’s stakeholders.”
Apex has offered to buy all of National Amusements, which has a controlling interest in Paramount.
It has offered $35.03 per share for Class A voting shares, a 33% premium to the stock’s 52-week high, and $23.28 for non-voting Class B shares, a 33% premium.
The firm would also assume Paramount’s debt totalling $15.8 billion and pay a break-up fee of $400 million to Skydance.
Paramount’s shares traded 2.7% higher at $11.55 late morning Wednesday.