Shares of LL Flooring Holdings Inc.
LL,
rallied 4.7% in premarket trading Monday after the wood flooring company said it has rejected a hostile cash buyout bid of $5.76 as share from F9 Brands Inc. subsidiary Cabinets To Go LLC. The bid represents a 34.3% premium to Friday’s closing price of $4.29. The company had confirmed in late-May that it had received a buyout bid, but at that time did not disclosed the per-share bid. LL Flooring said it determined the $5.76-per-share bid “significantly undervalues” the worth of the company. “If you were to significantly increase your $5.76 per share proposal to a level that is reflective of the value of the Company, we will consider it consistent with the Board’s fiduciary responsibilities and provide you with confidential information pursuant to a customary non-disclosure and standstill agreement,” LL Chairman Nancy Taylor wrote in a letter to F9. LL’s stock has run up 23.6% over the past three months through Friday, while the S&P 500
SPX,
has gained 9.5%.
