Cincinnati Kroger Co., the latest company targeted with an unsolicited tender offer, is recommending that its shareholders reject a recent “mini-tender” bid.
Private Canadian investment firm TRC Capital Corp., offered to purchase up to 3 million shares of Kroger’s common stock at $24 per share. The unsolicited offer, presented on Jan 23, is approximately 3.5% below the $24.87 per share closing price of the grocer’s common stock as of Jan. 22.
Kroger, which is not affiliated with the investment company, recommended against shareholders considering the offer. TRC has made similar “mini-tender” offers to other companies.
These mini-tender bids typically seek less than 5% of a company’s outstanding shares. This allows the bidding company to avoid disclosure and procedural requirements enforced by the U.S. Securities and Exchange Commission.