The Walt Disney Company Recommends Stockholders Reject Below Market Price Mini-Tender Offer by TRC Capital Corporation

After an unsolicited "mini-tender offer" made by TRC Capital Corporation was announced, The Walt Disney Company is recommending that shareholders not tender their shares because the offer price is below Disney's current share price.

TRC's mini-tender offer was made to Disney shareowners to purchase up to 2 million shares of Disney common stock at a price of $61 per share. According to a press release from Disney, this offer is for approximately one tenth of one percent of Disney's outstanding shares and the offer price is $3 per share or 4.7 percent below the stock's closing price on October 8.

Disney is recommending that shareholders not tender their shares and is urging them to consult with financial advisors.

The Securities and Exchange Commission (SEC) has issued an investor alert with regard to mini-tender offers. The alert warns investors that in making offers at below-market prices, "bidders are hoping that they will catch investors off guard if the investors do not compare the offer price to the current market price." The full SEC alert can be found here.

Disney's press release about the mini-tender offer from TRC states that the company "does not endorse this unsolicited mini-tender offer" and also states that Disney is "not associated in any way with TRC, the mini-tender offer, or the offer documentation."

If any Disney shareholders have already tendered their shares, Disney advises that they can withdraw their shares by providing written notice as described in the offering documents, prior to the offer's expiration which is currently 12:01 a.m. on November 7.

Story by Traci C., Source

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