Investing.com -- Activist investor Ancora Holdings Group has sweetened its unsolicited bid for H.B. Fuller Company's (NYSE: FUL) building adhesives unit to as much as $1.4 billion in cash, raising pressure on the chemical maker’s board following an initial rejection, according to Bloomberg News. The revised offer boosts the upper end of Ancora’s previous proposal by $200 million, while securing a highly confident letter from Fortress Investment Group regarding debt financing to underscore the transaction's viability.

H.B. Fuller’s board previously rebuffed Ancora’s $1.1 billion to $1.2 billion initial approach, maintaining that the proposal materially undervalued the division and failed to account for its long-term growth trajectory. Directors also concluded that the original offer lacked necessary execution details and overlooked the building segment's operational integration with the broader adhesives portfolio.

In response to the rejection, Ancora reaffirmed its strategic interest while warning that it would pursue all available legal remedies should the board’s decisions result in ongoing harm to shareholders. The $11.7 billion asset manager has built a prominent reputation pushing for governance and operational changes across industrial companies, having previously engaged in high-profile interventions at Norfolk Southern Corp. and United States Steel Corp.

Ancora initially went public with its opposition in May, labeling H.B. Fuller’s acquisition of tissue-healing maker Advanced Medical Solutions as extremely risky and value-destructive. Market reaction to the updated takeover proposal remained muted, with H.B. Fuller shares dipping less than 1% in Tuesday premarket trading.

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