Advertising group Catalina Marketing has agreed to be taken private by its largest shareholder, hedge fund ValueAct Capital Partners, for $32.10 a share in cash. Catalina's shares immediately gained 5.5% to $31.50 on the news.Other bidders have 45 days to outbid ValueAct; if none come forward, the deal is expected to close in the next few months. ValueAct already owns 16% of the direct- to-consumer marketing company. Catalina had rejected ValueAct's last offer, which valued it at $0.10 less a share; its shares are up 27% over the last 12 months.
Sources: Press Release, Bloomberg, TheStreet.com, Reuters
Commentary: Catalina Marketing: ValueAct Capital Offers Buyout
Stocks/ETFs to watch: Catalina Marketing Corporation (POS). Competitors: Omnicom Group (OMC), WPP Group (WPPGY), Interpublic Group of Companies, (IPG), Valassis Communications (VCI)
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