GE tells shareholders to reject TRC Capital's discounted mini-tender offer
24 Nov 2010
General Electric today asked its shareholders to ignore an unsolicited ''mini-tender'' offer by TRC Capital Corporation.
Toronto-based TRC, run by Lorne Albaum, a securities lawyer, had offered to buy up to 5 million shares, or approximately 0.05 per cent of the outstanding GE stock at $15.15 per share, representing an approximately discount 4.5-per cent discount to GE's closing price of $15.86 on 16 November 2010, the day before the offer commenced.
In addition, TRC's offer is subject to conditions, including the availability of financing on terms satisfactory to TRC.
GE has asked its shareholders not to endorse TRC's offer at the price below the current market price and attached with numerous conditions.
According to TRC's current offer documents, GE shareholders who have already tendered their shares can withdraw their shares at any time prior to the the expiration date specified in the offer document, which is 12:01 pm on 17 December 2010, unless TRC extends the offer period.
Earlier in June, TRC had launched a similar mini tender offer for Chubb Corporation, the holding company for a family of insurance companies informally known as the Chubb Group of insurance companies.