Beacon Roofing Supply on Tuesday adopted a poison pill defense to prevent a $11 billion hostile takeover by billionaire entrepreneur Brad Jacobs through his company QXO. The defense strategy creates a roadblock for Jacobs' attempt to become a big player in building products distribution through QXO,

From Goldman Sachs, Morgan Stanley, Citi, Credit Agricole, Wells Fargo, and Mizuho, among other big financial institutions, QXO has obtained complete finance commitments. These pledges plus QXO's current cash will pay for the whole acquisition price, any required debt refinancing for Beacon, and associated transaction expenses.

M&A specialists are eyeing a robust list of U.S. takeover candidates, with a buoyant economy, strong buyer appetite and a potentially looser regulatory regime seen driving more deals.

Beacon Roofing Supply said on Tuesday it has adopted a limited duration stockholder rights agreement, commonly known as a poison pill, following a hostile takeover bid by QXO. Beacon is issuing one preferred share purchase right for each outstanding share of its common stock to stockholders,

QXO Inc. has launched a hostile takeover bid for Beacon Roofing Supply Inc. after the board of the building products company rejected its offer as too low.

QXO’s $11 billion pitch to buy Beacon Roofing touts the company’s AI experience as well as the overall housing shortage in the United States.

QXO (NYSE:QXO) has commenced an $11B all-cash tender offer to acquire all outstanding shares of Beacon Roofing Supply (NASDAQ:BECN) for $124.25 a share. This price implies a 37% premium above Beacon’s 90-day unaffected volume-weighted average price of $91.

Beacon Roofing Supply Inc. has started soliciting interest from potential buyers as it looks to fend off an $11 billion takeover bid from rival QXO Inc., people familiar with the matter said.

Meanwhile, QXO maintains that its offer of $124.25 per share is 17% higher than the Beacon stock has ever traded; represents a 37% premium over the 90-day unaffected stock price; and represents a 26% premium to the stock the day before the Wall Street Journal’s Nov. 18 report that QXO was pursuing a deal.