Company: QXO-PB
Filing Date: 2025-03-07
Form Type: DFAN14A
Source: 0000950142-25-000649
Chunk: 4

Company: QXO, Inc.
Filing Date: 2025-03-07
Form: DFAN14A
Chunk 4
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’s likely not a good idea to bet against him now.

Exhibit 3:

Building-Products Distributor QXO Launches Hostile Bid for Beacon

Wall Street Journal

By Lauren Thomas

January 27, 2025

| § | QXO takes offer directly to shareholders after being rebuffed |

Building-products distributor QXO is taking its all-cash offer to acquire
Beacon Roofing Supply directly to shareholders after being rebuffed on several occasions.

The details

QXO publicly launched a tender offer to acquire Beacon early Monday, confirming
an earlier report by The Wall Street Journal.

It offered to buy all shares outstanding of Beacon for $124.25 per share,
the same price it previously proposed. That values Beacon at $7.7 billion, or roughly $11 billion including debt.

Beacon shares closed Friday at $118.42, giving the business a market value
of around $7.3 billion. The shares have run up since mid-November, when the Journal reported on the bid QXO had privately made to Beacon.

QXO said it hopes to clinch a deal quickly after its tender offer expires
on Feb. 24.

The context

Herndon, Va.-based Beacon is the largest publicly traded distributor of
roofing materials and complementary building products in the U.S. and Canada.

Earlier this month, QXO published a letter detailing its cash offer, which
it said Beacon had refused to engage on. The offer was initially submitted on Nov. 11, it said.

QXO argued that its offer was compelling for shareholders and that it shouldn’t
face any significant antitrust or other regulatory issues.

Beacon said in response that QXO’s proposal “significantly
undervalues Beacon and fails to reflect the company’s growth strategy and upside potential.” It said it offered QXO the option
to sign a nondisclosure agreement to share confidential management projections, but that QXO wasn’t interested.

QXO said in a securities filing that the NDA contained a standstill provision
that would have prevented QXO from launching a tender offer and from nominating board candidates.

QXO has said it secured financing for a deal and is prepared to nominate
directors to Beacon’s board. The window for shareholder nominations at Beacon ends on Feb. 14.

The rationale

QXO, based in Greenwich, Conn., has a market value of around $5.6 billion.
It is headed by Brad