The Walt Disney Co. has urged shareholders to reject a "mini-tender" offer from TRC Capital, claiming the deal is an attempt to snap up shares at a discount price.
TRC Capital launched an offer for 2 million Disney shares on Oct. 9 at a price of $61 each, $3 per share below the $64 per share trading price of the stock on Oct. 8. Disney shares were trading at $66.56 on Oct. 15.
In a statement Oct. 15, Disney urged shareholders to reject the tender offer, adding that such mini-tenders are often an attempt by companies to acquire shares at a bargain basement price from unsuspecting shareholders.
According to a Securities and Exchange Commission investor alert, mini-tenders are purposefully made at below 5% of a company’s outstanding stock to skirt an SEC filing requirement, and are being used increasingly to catch investors “off guard.”, mini-tenders are purposefully made at below 5% of a company's outstanding stock to skirt an SEC filing requirement, and are being used increasingly to catch investors "off guard."
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