Pfizer Inc (NYSE:PFE) has today gone ahead to make the announcement that it had indeed received notice in line with an unsolicited mini-tender offer by TRC Capital Corporation of Ontario, Canada, and the plans underway are those of purchasing up to 4 million shares of Pfizer common stock that will go at a price of $31.60 per share in cash.
According to some top business analysts that looked closer into the matter, TRC Capital’s offer price of $31.60 per share was approximated to be about 4.27 percent lower than the $33.01 closing share price of the giant company’s common stock as of May 12, 2017.Of course this particular time was a day prior to the date associated with this specific offer.
Reports indicate that Pfizer doesn’t in any way endorse TRC Capital’s unsolicited mini-tender offer and has indeed gone ahead to recommend that the various stockholders do away with tendering their respective shares particularly in response to TRC Capital’s offer. That in one way or the other means that the offer would be going at a price way below the line-the current marker price for the shares associated with Pfizer which are of course subject to numerous conditions.
As a matter of fact, there are reports that TRC Capital has been making many similar mini-tender offers for shares of other top providers and of course that has sparked high talk among the concerned parties. However, it is critical to come out pretty clearly on one matter! Mini-tender offers cannot by any chance be significantly relied upon when it comes to proving investors with the desirable level of protection as is provided by the enormous tender offers under the U.S. securities laws.
SEC has moved ahead to send out a word of caution to all the investors enlightening them in a huge way about the fact that some bidders have been making mini-tender offers way below the established market prices “hoping that they will catch investors off guard if the investors do not compare the offer price to the current market price.” It is thus crucial that the various investors stay with their eyes wide open and practice caution.