Shareholders should steer clear of 'mini-tender' offer from TRC Capital, says Hewlett Packard
Hewlett Packard Enterprise Co. on Friday recommended its shareholders reject a "mini-tender" offer to buy up 8 million shares, or about 0.43% of the company's common stock, from TRC Capital Corp. TRC Capital is offering shares at $13, or 4.7% lower than the Nov. 18 closing price, which was the day before the offer. The technology company said in a news release that it is recommending any stockholders who've not responded to the offer do nothing, and those who've already tendered shares, consider withdrawing them by providing the written notice described in TRC Capital's offering documents. The offer expires Dec. 18. The U.S. Securities and Exchange Commission has issued statements in the past that coincide with Hewlett Packard's concerns: "Some bidders make mini-tender offers at below-market prices, hoping that they will catch investors off guard if the investors do not compare the offer price to the current market price." TRC Capital has made similar "mini-tender" offers in the past, and maintains the offer is "solely for investment purposes." Shares of Hewlett Packard Enterprise were inactive in premarket trade, but have fallen 12% since trading began Oct. 19.
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