Starboard Proposes To Buy RealD For $12/shr; RealD Says Will Consider Offer

(RTTNews) - Activist investor Starboard Value LP proposed to buy all of the shares in RealD Inc. (RLD), the supplier of 3-D technology to cinemas, that it does not already own for $12 per share in cash.

In a letter to the chairman and Chief Executive officer of RealD, Starboard said that the offer represented a 29 percent premium over RealD's $9.27 closing price on October 1 in New York Stock Market.

Starboard, which holds a 9.9 percent stake in RealD, said in a regulatory filing that the schedule for coming 3D films presents a challenge and RealD will be "far better positioned to execute on the opportunities at hand as a private company."

Responding to the Starboard's takeover proposal, RealD noted that its board will carefully review and consider the unsolicited, non-binding indication of interest from Starboard. RealD is always open to constructive discussions about opportunities to increase stockholder value. The Company will continue to take actions it believes are in the best interest of all RealD stockholders.

RLD closed Wednesday trading at $9.27. The stock gained $2.33 or 25.13% in after-hours trade.