Corrected
General Dynamics boosts CSRA buyout bid by 1.2% after rival hostile bid from CACI
Shares of CSRA Inc. rose 0.9% in premarket trade Tuesday, after General Dynamics Corp. raised its per-share bid to buy the information technology company, in the wake of a rival bid from CACI International Inc. . General Dynamics said it will now pay $41.25 a share in cash, up from its original bid announced on Feb. 12 of $40.75 a share in cash. That increases the value of the deal to $9.7 billion, including the assumption of $2.8 billion in debt, from $9.6 billion. Over the weekend, CSRA confirmed that it received an unsolicited $44-a-share buyout bid, but in cash and stock. CSRA’s board of directors has determined that CACI’s bid “could not reasonably be expected to lead to a company superior proposal,” and recommends its shareholders tender their shares to General Dynamics’ tender offer. CSRA’s stock has rallied 40.0% over the past 12 months through Monday, while General Dynamics shares have climbed 16.6%, CACI shares have rallied 16.1% and the S&P 500 has gained 14.3%.