Rona Inc named a new executive chairman and reshuffled its board on Monday as part of a deal with its top shareholders that will help the Canadian hardware retailer and distributor avoid a potentially bruising proxy battle.The move comes just a few months after Rona, still Canada's top distributor and retailer of hardware, home renovation and gardening products, rebuffed an unsolicited C$1.8 billion ($1.81 billion) takeover proposal from U.S.-based Lowe's Cos Inc .It could signal a greater willingness to consider a sale of the company, which has performed poorly against Lowe's and Home Depot Inc on its home turf, analysts said."We view today's announcement as favorable to Rona's stock as it suggests greater support by the board to proactively enhancing shareholder value," Barclays Capital analyst Jim Durran said in a note. "The changes could result in more receptive dialogue regarding potential divestitures, or outright sale of the company."
The Home Depot, Inc. (The Home Depot) is a home improvement retailer. Shares of HD traded higher by 0.65% or $0.42/share to $65.47. In the past year, the shares have traded as low as $43.98 and as high as $65.92. On average, 7609660 shares of HD exchange hands on a given day and today's volume is recorded at 6543957.
Rona, Inc. is a Canada-based company, which distributes and retails hardware, home improvement, and gardening products. Shares of RON traded higher by 3.13% or $0.36/share to $11.86. In the past year, the shares have traded as low as $8.94 and as high as $14.49. On average, 240633 shares of RON.TO exchange hands on a given day and today's volume is recorded at 169835.
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