Coliseum Capital says New Mountain bid indication undervalues R1 RCM

Coliseum Capital Management, which identifies itself as “one of the largest shareholders” of R1 RCM, announced that it has issued an open letter to the company’s board of directors, stating that the firm believes “the offer by New Mountain Capital, L.L.C. to acquire the company for cash consideration of $13.75 per share significantly undervalues the company.” The letter also expresses support for the company’s board of directors, management team, and strategy for shareholder value creation. “Coliseum encourages the Board of Directors to stand firm and require a materially higher price, or reject the offer and stay the course as a public company,” the firm stated in a press release.