Disney shareholders should reject an “unsolicited mini-tender offer”...
Disney shareholders should reject an “unsolicited mini-tender offer” from TRC Capital Corp., said Disney in a news release Tuesday. TRC is offering to buy up to 2 million shares of Disney common stock -- one-tenth of one percent of the…
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company’s outstanding shares -- at $61 per share, a price that Disney said is about 4.7 percent below its closing price of $64 on Oct. 8, the day before the offer began. “Disney recommends that shareowners not tender their shares because the offer price is below Disney’s current share price,” said the release. Disney said TRC’s offer is subject to the satisfaction of several conditions, “including the absence of any decrease in the market price of Disney shares from the price on the date of the offer.” If the market price of Disney shares falls or TRC can’t get financing, TRC can terminate the offer and not buy any shares, Disney said. The Securities and Exchange Commission has warned investors that bidders making mini-tender offers are doing so at below market prices in order to catch investors who don’t check the market price “off guard,” the release said.