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

As dealmaking surges, activist investors are pushing companies to sell their entire business or parts of it, heaping new pressure on boards and management teams. Ancora has also pushed chemical maker Ashland for 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.

The deal for Fuller's building adhesive solutions unit would increase the company's focus on the integration of Advanced Medical Solutions and would position it to exit a segment that has low margin in a highly fragmented market, Ancora said.

Ancora, which in May declared a more than 2% stake in Fuller, had described a deal for AMS as "irresponsible pursuit" and urged [H.B. Fuller] to abandon it.

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

Shares of the company were down 1.5% in morning trade. They have risen 2.8% this year.

Aug. 12 (Reuters) - Activist investor Ancora Holdings said on Wednesday it has proposed to buy H.B. Fuller's Building Adhesive Solutions business for as much as $1.2 billion in cash.

Ancora in a letter to the H.B. Fuller board said it wanted the company to explore a deal for the unit, describing it as "win-win" for the adhesives maker and its shareholders.

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

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