For Investors, Minitender Offers Are a Maximum Nuisance

Just when you thought that nasty publicity had scared them away, here come the bad boys of the stock-tender business again.

They're generally elusive characters who try to get individual investors to sell their shares for less than market value through so-called minitender offers, or offers for less than 5% of a company's outstanding stock. The bidders don't seek bigger stakes because then they would run afoul of federal laws requiring them to disclose detailed information about themselves and their offer.

The deals are far removed from traditional tender offers, under which big investors or companies bid for stock at a premium to the market value to gain control of a company. Most of the people behind minitenders are fringe players, hoping to snare a few shares that can be quickly sold at a profit. ...