Ford to Shareholders: Reject Lowball Tender Offer

DETROIT TheStreet) -- Ford ( F) is urging shareholders to reject a mini-tender offer by a Canadian firm that specializes in such attempts.

The firm, TRC Capital, has also made mini-tender offers for companies including US Steel ( X) and Marathan Petroleum ( MPC), which also recommended against. Such offers are for less than 5% of a company's outstanding stock and therefore are subject to less stringent oversight by the Securities and Exchange Commission.
Ford is urging shareholders to reject a mini-tender offer by a Canadian firm that specializes in such attempts.

In Ford's case, the offer price was $11.70, about 4.5% below the $12.25 closing price on Feb. 28, which is approximately when the offer commenced. In mid-afternoon trading Thursday, Ford shares were up 23 cents at $12.47.

"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," the SEC has said.

In a press release, Ford noted that the offers can be terminated for a variety of reasons and that, because SEC oversight is limited, "mini-tender offers do not provide investors with the same level of protections as provided by larger tender offers under United States securities laws."

TRC's offer is for up to 8 million shares, about a fifth of 1% of Ford's outstanding shares.

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