General Dynamics responded to CACI International’s competing bid for defence and government sector IT company CSRA on 20 March, increasing its offer to USD41.25 per share, bringing the value of the transaction to USD9.7 billion. General Dynamics had originally announced its proposed merger with CSRA on 12 February at a rate of USD40.75 per share.
The amendment to the company’s offer comes just three days after CACI International announced an offer for CSRA composed of USD15 in cash and 0.184 CACI shares per CSRA share, which would leave CSRA shareholders holding 55% of the combined entity.
General Dynamics had originally dismissed CACI’s unsolicited offer, arguing in an 18 March statement that it “overstates the real value to the CSRA shareholders and understates the risk attendant to it” and is inferior to its own all-cash offer in several ways.
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