Shareholder Chatham Asset Urges RR Donnelley Board To Seek Strategic Review, Threatens Proxy Contest

Chatham Asset Management, LLC, a private investment firm that manages funds that beneficially owns 14.9% of the outstanding common stock and the largest bondholder of RR Donnelley & Sons Co RRD, has sent a letter to RRD's Board of Directors.
The letter states concern over the RRD Board's inaction and lack of engagement with Chatham.
Chatham lists initiatives that needed to be implemented to stabilize RRD's share price and drive future value creation.
Chatham's proposed initiatives call for a strategic review process focused on identifying and selling non-core assets, increased operational efficiency through improved margins from cost reduction, improved capital allocation, and better alignment of executive compensation with performance.
Chatham said it would be left with no choice but to commence a proxy contest if RRD Board does not proactively respond to its suggestions. Its suggestion includes appointing a new Chairman, adding new directors, terminating the poison pill, and forming a strategic review and finance committee.
Separately, RRD showcased its end-to-end, single-source capabilities for premium folding carton production while at PACK EXPO Las Vegas (booth N-8805).
Price Action: RRD shares closed higher by 13.01% at $4.95 on Monday.