Target Corp. has received an unsolicited mini-tender offer from TRC Capital Corp. to purchase up to 1.5 million shares of its common stock at $89 per share in cash, equating to roughly 0.33% of Target's outstanding shares. The offer is set to expire on 6 October.
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The retailer stated it "expresses no opinion" on the bid but highlighted warnings from the US Securities and Exchange Commission (SEC) about such offers. The SEC has cautioned that "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."
Mini-tender offers fall below the 5% threshold that would trigger stricter SEC disclosure requirements, meaning they provide fewer safeguards than traditional tender offers.
Target has advised shareholders to check current market prices, consult financial advisers and exercise caution before making any decisions.
TRC Capital has previously launched similar offers for companies including Microsoft and AT&T. The move adds to ongoing scrutiny of mini-tender offers, which regulators note can leave investors vulnerable if accepted without due diligence.
Source: www.furnituretoday.com
