Ancora offers to buy H.B. Fuller's adhesive unit for up to $1.2 billion in cash

H.B. Fuller's shares were down 2.3% in afternoon trade after having risen 2.8% this year.

Activist investors are pushing companies to sell their entire business or parts of it as dealmaking surges, heaping pressure on boards and management teams. Ancora has also pushed chemical maker Ashland to pursue a sale.

Earlier this year, H.B. Fuller agreed to buy British medical supplier Advanced Medical Solutions Group in a cash deal valuing it at about £715 million ($967.04 million) including debt.

Ancora, which in May disclosed a more than 2% stake in Fuller, had described the deal for Advanced Medical Solutions as an "irresponsible pursuit" and urged the company to abandon it.

On Wednesday, however, Ancora said the sale of Fuller's building adhesive unit would allow the company to focus on integrating Advanced Medical Solutions while exiting a low-margin segment in a highly fragmented market.

H.B. Fuller was not immediately available for comment when contacted by Reuters.

Ancora has also been considering a proxy fight to gain control of the company's board, a source familiar with the matter told Reuters.

The investment firm said it had privately re-engaged with H.B. Fuller's chief executive and chairman for a potential deal in early July, but had not received a substantive response.

"We fear your collective preference for entrenchment is once again impairing your judgment and undermining shareholders' best interests," Ancora said in its letter to Fuller's board, adding that it was prepared to immediately enter into a confidentiality agreement and begin due diligence.