mini-tender offer

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Mini-Tender Offer

A tender offer for less than 5% of shares outstanding. A tender offer is an offer to buy a significant amount of stock in a publicly-traded company directly from shareholders, an act that bypasses the board of directors. A tender offer may be part of a hostile takeover and therefore any offer exceeding 5% of the company's shares must be registered with the SEC and submitted to oversight. A mini-tender offer avoids this requirement, which can be detrimental to shareholders, as the SEC does not have the ability to protect their rights.

mini-tender offer

An offer to purchase less than 5% of a company's stock. Investors are at greater danger in a mini-tender offer because it is not subject to many of the SEC disclosure and procedural protections that apply to traditional tender offers. For example, tendering shares in a mini-tender offer generally means an investor cannot change his or her mind even though the tender has not closed.
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TRC Capital has made numerous mini tender offers for other companies' shares.
The Securities and Exchange Commission (SEC) has recommended that shareowners solicited in mini tender offers exercise caution in connection with these offers and has issued an investor alert, available on the SEC's website at http://www.
The SEC says that mini tender offers for less than 5% of a company's stock "have been increasingly used to catch investors off guard" and that investors "may end up selling their securities at below market prices.