Graham Packing Co. Inc. (NYSE:GRM), a plastic containers supplier, said it received an unsolicited proposal from a third party to acquire all shares of the company for $25 per share in cash, in an offer totaling $1.64 billion.
The board of directors of Graham has concluded the new proposal may be superior to the currently pending $1.45 billion takeover by Siligan Holdings Inc. (NASDAQ:SLGN). Two months ago, Siligan offered Graham a cash-and-stock bid valued at $22.10 based on Fridays close.
If Grahams board of directors decides to pursue the new proposal, the company is required to provide Siligan three business days written notice prior to the change in recommendation, during which Siligan would have a match right. Siligan originally jumped on the Graham deal in hopes of becoming a world leader in food and specialty packaging through the acquisition.
Siligan shares were down 3.5% to $41.60 each, while GRM rallied 20% to $26.37 in recent premarket trading.