USG Rejects Unsolicited Proposal From Knauf; Stock Surges

(RTTNews) - USG Corp. (USG) said that its Board has unanimously rejected the unsolicited and non-binding proposal disclosed today by Gebr. Knauf KG to acquire all of the shares of USG for $42.00 per share in cash. USG determined that the proposal substantially undervalues the Company and is not in the best interests of all of USG's shareholders.

In the Monday pre-market trade, USG is trading at $39.60 up $6.09 or 18.17%.

"We are confident that the strategy we presented on March 8, 2018 at our Investor Day will deliver significantly more value to our shareholders than Knauf's proposal," said Steven Leer, USG's non-executive chairman of the Board.

Eearlier today, Gebr. Knauf KG confirmed in a 13D filing amendment that it submitted a proposal on March 15, 2018 for a potential transaction with USG. Knauf's 13D filing amendment follows today's Berkshire Hathaway 13D filing amendment regarding Knauf's March 15, 2018 proposal to USG and Berskhire Hathaway's proposal to sell its shares of USG to Knauf should a potential transaction between Knauf and USG occur.