Renaissance Learning, Inc.

Abstract

Should Permira Advisers increase its bid for Renaissance Learning, Inc. ("RLRN") in response to an unsolicited counter offer by a competitor, Plato Learning? The founders and majroity stockholders of RLRN, Judi and Terry Paul, had publicaly stated that they did not support a sale to Plato and supported this view by stating t hat they would accept a lower price for their shares than the price paid to the other shareholders if Permira's bid was accepted. RLRN asked Permira to increase its offer to match the value of Plato's offer for the minority shareholders. How much is RLRN worth to Permira? Are the Paul's justifications for preferring Permira over Plato significant enough to counter a higher offer from Plato?