Amcor, Berry to Provide Supplement Disclosures Amid Shareholder Concerns Over Proposed Merger
Amcor and Berry Global will provide supplemental disclosures regarding their proposed merger following shareholder lawsuits alleging omitted material information. This decision aims to address the claims and prevent further legal expenses and delays. Despite denying the necessity for additional disclosures, the firms are taking this step to mitigate concerns. The merger is set for November 2024, but Amcor's shares dropped nearly 1% in early trading on Monday.
Amcor and Berry Global decided to voluntarily provide supplemental disclosures in the joint proxy statement and prospectus relating to claims they received concerning their proposed merger, according to a Monday Australian bourse filing.
The decision comes to "moot plaintiffs' disclosure claims and avoid nuisance," as well as avoid possible expense and business delays.
The purported stockholders of Berry Global filed lawsuits in New York alleging that the firms omitted certain purportedly material information from documents filed in connection with the merger, per the filing.
Amcor also received several demand letters from purported stockholders of Berry and/or Amcor, alleging that the documents filed in connection with the merger allegedly omitted certain purported material information.
The firms denied all allegations that any additional disclosure was required or material.
Amcor said it will merge with rival plastics packaging company Berry Global via an all-stock deal in November 2024.
Amcor's shares fell almost 1% in early trading on Monday.
