Lowe’s Urges RONA Board to Reconsider Offer
[Tuesday, July 31, 2012] Lowe's Companies Inc. confirmed today that it has made a non-binding proposal to the Board of Directors of Canadian home improvement and hardware retailer RONA Inc. to acquire all of the issued and outstanding common shares of RONA for C$14.50 in cash per share.
Robert A. Niblock, Chairman, President and Chief Executive Officer of Lowe's, said, "We are disappointed that RONA's Board of Directors has rejected our friendly non-binding proposal, which is clearly attractive for RONA shareholders. We believe a combination of Lowe's and RONA makes enormous business sense. In addition, our proposal includes a number of important commitments to RONA that will benefit key stakeholders, including RONA's dealer-owners, employees, suppliers, customers and local communities and would keep RONA's headquarters in Boucherville, Quebec."
"We reiterate our proposal to the RONA Board. We hope that in the exercise of its fiduciary duties, RONA's Board will reconsider and recognize that our proposal represents a very attractive opportunity for all RONA shareholders and the company's major stakeholders. Lowe's operates with the utmost respect and support for the communities where we do business and our proposal demonstrates Lowe's respect for the economic and cultural heritage of this important Quebec-based business. Bottom line, we believe that our proposal is good for RONA and the communities it serves in Quebec as well as across Canada, and it is also good for consumers. We encourage the Board of RONA to reconsider its position," concluded Mr. Niblock.
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