What is a Mini-Tender Offer?
An Overview of Mini-Tender Offers
Mini-tender offers are a type of takeover bid that is made for less than 5% of a company's outstanding shares. They are typically made by small, unknown companies that are trying to acquire a controlling interest in a larger company without having to pay a fair price for its shares.
How Mini-Tender Offers Work
Mini-tender offers work by sending a letter to shareholders offering to buy their shares at a price that is typically below the current market price. The offer is typically for a short period of time, such as 20 or 30 days. If shareholders tender their shares, they will receive the offer price. However, if the offer is not successful, the shareholders will be left with their shares and will not receive any compensation.
Why Mini-Tender Offers Are a Problem
Mini-tender offers are a problem because they can be used to deceive shareholders. The offer price is often well below the current market price, and the shareholders may not be aware that they are being offered a lowball price. In addition, the offer is typically for a short period of time, which gives shareholders little time to consider their options.
Steps to Take If You Receive a Mini-Tender Offer
- Do not respond to the offer.
- Contact your broker or financial advisor for advice.
- File a complaint with the Securities and Exchange Commission (SEC).
What Intel Has Recommended Regarding This Recent Mini-Tender Offer
Intel has publicly recommended that its stockholders reject a recent mini-tender offer proposed by Tutanota which has been below market price, and for a short period of time.
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