Seeking Alpha

Disney mini-tender offer not too appetizing

  • Disney (DIS -0.7%) suggests shareholders reject an offer from TRC Capital to buys up to 2M shares at $61 a pop.
  • The "mini-tender offer" is set below the 5% threshold of Disney shares where TRC Capital would fall closer under the eye of the SEC.
  • With Disney currently trading over $66, interest in the mini-tender should be subdued.
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Comments (3)
  • Sum02006
    , contributor
    Comments (404) | Send Message
     
    Who would tender at a price $5 below the current trading price???
    15 Oct 2013, 12:11 PM Reply Like
  • Esekla
    , contributor
    Comments (3422) | Send Message
     
    Tender prices are often below retail because of the volumes involved. The market is nowhere even close to a level playing field. Only retail investors pay retail.
    15 Oct 2013, 12:19 PM Reply Like
  • CassandraSees
    , contributor
    Comments (390) | Send Message
     
    Who would find it a positive move to accept $5 below market price? Volume or not? Is TRC hoping that the offer will make some investors nervous and thus drive the price down in the near future?
    18 Oct 2013, 02:16 PM Reply Like
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