Rithm Capital won’t increase offer for Sculptor Capital to $12.20, filing states

In a regulatory filing, Sculptor Capital Management (SCU) disclosed that on October 3, the Former EMD Group issued a statement to the press indicating that, based on reports in the press regarding the consortium’s latest proposals, the Former EMD Group believed the consortium’s offer was more attractive than the proposed transactions with Rithm Capital (RITM) and called on the special committee to engage with the consortium. Following the release of the statement by the Former EMD Group, representatives of Skadden informed representatives of Latham that Rithm had determined to discontinue engagement with the Former EMD Group regarding the proposed amendments that contemplated increasing the public merger consideration to $12.20 per share of Class A Common Stock together with a corresponding increase to the consideration payable to Partnership Units. The special committee is continuing to evaluate the September 30 proposal, as amended by the October 2 letter, which includes a bid of $11.15 a share, in consultation with its independent financial and legal advisors and will make its recommendation to the company’s board of directors and determine next steps “in due course,” the filing stated. “Consistent with its fiduciary duties, the special committee and the company’s board of directors will determine the best path forward with the interest of maximizing value for all company stockholders,” the filing added.