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GAMCO has reviewed Project Rise Partners’ open letter regarding their offer for Paramount at a price higher than the current merger price. Despite the ‘Go Shop’ period expiring on August 21, 2024, GAMCO believes Paramount’s Board should consider and respond to this serious proposal. Through Operation Fishbowl, GAMCO continues to receive documents via a Delaware 220 Books and Records request, seeking to ensure shareholders receive fair value. However, materials received so far lack sufficient information to properly value NAI’s Paramount holdings and non-Paramount assets. GAMCO Portfolio Manager Christopher Marangi notes uncertainty about NAI’s per-share compensation for their control ownership.
GAMCO ha esaminato la lettera aperta di Project Rise Partners riguardo alla loro offerta per Paramount a un prezzo superiore a quello attuale della fusione. Nonostante il periodo di ‘Go Shop’ scada il 21 agosto 2024, GAMCO ritiene che il Consiglio di Paramount dovrebbe considerare e rispondere a questa proposta seria. Attraverso l’Operazione Fishbowl, GAMCO continua a ricevere documenti tramite una richiesta Delaware 220 Books and Records, cercando di garantire che gli azionisti ricevano un valore equo. Tuttavia, i materiali ricevuti finora mancano di informazioni sufficienti per valutare adeguatamente le partecipazioni di Paramount di NAI e gli asset non Paramount. Il gestore del portafoglio GAMCO, Christopher Marangi, sottolinea l’incertezza riguardo alla compensazione per azione di NAI per la loro proprietà di controllo.
GAMCO ha revisado la carta abierta de Project Rise Partners sobre su oferta por Paramount a un precio superior al precio actual de fusión. A pesar de que el período de ‘Go Shop’ expira el 21 de agosto de 2024, GAMCO cree que la Junta de Paramount debería considerar y responder a esta propuesta seria. A través de la Operación Fishbowl, GAMCO continúa recibiendo documentos mediante una solicitud de Delaware 220 Books and Records, buscando asegurar que los accionistas reciban un valor justo. Sin embargo, los materiales recibidos hasta ahora carecen de información suficiente para valorar adecuadamente las participaciones de Paramount de NAI y los activos no Paramount. El gerente de cartera de GAMCO, Christopher Marangi, señala la incertidumbre sobre la compensación por acción de NAI por su propiedad de control.
GAMCO는 Paramount에 대한 Project Rise Partners의 공개 서한을 검토했습니다. 제안된 가격이 현재의 합병 가격보다 높습니다. ‘Go Shop’ 기간이 2024년 8월 21일에 종료되더라도 GAMCO는 Paramount의 이사회가 이 심각한 제안을 고려하고 응답해야 한다고 믿습니다. Fishbowl 작전을 통해 GAMCO는 델라웨어 220 Books and Records 요청을 통해 문서를 계속 수령하고 있으며, 주주가 공정한 가치를 받을 수 있도록 노력하고 있습니다. 그러나 지금까지 받은 자료는 NAI의 Paramount 지분 및 비-Paramount 자산을 적절히 평가하기에 충분한 정보가 부족합니다. GAMCO 포트폴리오 관리자인 Christopher Marangi는 NAI의 지배 주식에 대한 1주당 보상에 대한 불확실성을 언급합니다.
GAMCO a examiné la lettre ouverte de Project Rise Partners concernant leur offre pour Paramount à un prix supérieur à celui du prix de fusion actuel. Bien que la période de ‘Go Shop’ expire le 21 août 2024, GAMCO estime que le Conseil de Paramount devrait envisager et répondre à cette proposition sérieuse. Grâce à l’Opération Fishbowl, GAMCO continue de recevoir des documents via une demande Delaware 220 Books and Records, cherchant à s’assurer que les actionnaires reçoivent une juste valeur. Cependant, les documents reçus jusqu’à présent manquent d’informations suffisantes pour évaluer correctement les participations de NAI dans Paramount et les actifs non-Paramount. Le gestionnaire de portefeuille de GAMCO, Christopher Marangi, note une incertitude quant à la compensation par action de NAI pour leur propriété de contrôle.
GAMCO hat den offenen Brief von Project Rise Partners hinsichtlich ihres Angebots für Paramount zu einem Preis, der über dem aktuellen Fusionspreis liegt, überprüft. Trotz des Ablaufs der ‘Go Shop’-Periode am 21. August 2024 glaubt GAMCO, dass der Vorstand von Paramount dieses ernsthafte Angebot in Betracht ziehen und darauf reagieren sollte. Durch die Operation Fishbowl erhält GAMCO weiterhin Dokumente über eine Delaware 220 Books and Records-Anfrage, um sicherzustellen, dass die Aktionäre einen fairen Wert erhalten. Die bisher erhaltenen Materialien enthalten jedoch nicht genügend Informationen, um die Paramount-Bestände von NAI und die Nicht-Paramount-Vermögenswerte angemessen zu bewerten. GAMCO-Portfoliomanager Christopher Marangi weist auf die Unsicherheit bezüglich der pro-Aktie-Entschädigung von NAI für ihren Kontrollbesitz hin.
Positive
- Project Rise Partners offers higher price per share than current merger deal
- GAMCO actively pursuing shareholders’ interests through Operation Fishbowl investigation
Negative
- Insufficient transparency regarding NAI’s compensation and asset valuation
- Slow document disclosure process (‘glacial speed’) hampering proper valuation
- Lack of clear information about control shareholder’s compensation
Insights
This development in the Paramount acquisition saga highlights significant corporate governance concerns. Project Rise Partners’ higher offer necessitates board review under fiduciary duties, despite the expired go-shop period. GAMCO’s pursuit of transparency regarding NAI’s compensation package through Delaware 220 request is crucial, as the differential treatment between controlling and minority shareholders could impact deal fairness. The “glacial speed” of document disclosure and lack of clarity on NAI’s per-share consideration raise red flags about deal transparency. This situation underscores potential value discrepancy between the current merger price and alternative offers, suggesting possible undervaluation in the current deal terms.
The board’s legal obligation to consider superior offers remains active despite the go-shop period expiration, as directors maintain ongoing fiduciary duties until deal closure. GAMCO’s Section 220 books and records demand represents a strategic legal maneuver to evaluate deal fairness, particularly regarding differential treatment of the controlling shareholder. The slow document production pace could provide grounds for legal challenges or deal delays. Project Rise Partners’ public letter creates additional pressure on the board to demonstrate thorough consideration of alternative offers to fulfill their fiduciary obligations.
GREENWICH, Conn.–(BUSINESS WIRE)– GAMCO reviewed Project Rise Partners “Open” Letter to Paramount Shareholders published on the Globe News Wire at 11:56 a.m. today. The letter addresses the offer Project Rise Partners made for Paramount at a price per share higher than the current merger price. Notwithstanding the expiration of the “Go Shop” period on August 21, 2024, Paramount’s Board has an obligation to consider any serious proposals prior to the finalization of the deal. GAMCO believes Paramount should respond to this offer and explain why it is not being or was not considered.
GAMCO’s Operation Fishbowl continues to receive documents, albeit at glacial speed, in response to a Delaware 220 Books and Records request. GAMCO’s request is an effort to ensure that Paramount shareholders receive comparable value for their shares as the control shareholder. To date, the materials received do not contain sufficient information to value NAI’s Paramount holdings and non-Paramount assets. GAMCO continues to believe this information is necessary to evaluate the consideration being paid to Paramount’s control shareholder. GAMCO Portfolio Manager Christopher Marangi commented that, “It remains unknown what NAI is receiving on a per share basis for their control ownership of Paramount.” GAMCO remains fully committed to obtaining this information essential to protect our clients’ assets.
GAMCO Investors, Inc., through its subsidiaries, manages assets of private advisory accounts (GAMCO), mutual funds and closed-end funds (Gabelli Funds, LLC) and is known for its Private Market Value with a Catalyst™ style of investment.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241025164796/en/
Christopher Marangi
Co-CIO, Value
(914) 921-5219
For further information please visit
Source: GAMCO Investors, Inc.
FAQ
What is Project Rise Partners’ offer for Paramount compared to the current merger price?
According to GAMCO’s review, Project Rise Partners has made an offer for Paramount at a price per share higher than the current merger price, though specific figures were not disclosed in the press release.
When does the ‘Go Shop’ period expire for Paramount’s merger deal?
The ‘Go Shop’ period for Paramount’s merger deal expires on August 21, 2024.
What is Operation Fishbowl and what is its purpose?
Operation Fishbowl is GAMCO’s initiative to obtain documents through a Delaware 220 Books and Records request, aimed at ensuring Paramount shareholders receive comparable value for their shares as the control shareholder.
What information is GAMCO seeking regarding Paramount’s valuation?
GAMCO is seeking information to value NAI’s Paramount holdings and non-Paramount assets, specifically focusing on understanding what NAI is receiving on a per share basis for their control ownership of Paramount.
