Walt Disney Co. (DIS:US) recommended that investors reject an offer to buy a small portion of its stock for 4.7 percent below market value.
The U.S. Securities and Exchange Commission has warned against such mini-tender offers, which bidders use to “catch investors off guard if the investors do not compare the offer price to the current market price,” Disney said today in a statement.
TRC Capital Corp., a closely held investment firm, made the proposal last week to acquire about 2 million Disney shares for $61 apiece. Toronto-based TRC has made similar offers this year for Intel Corp. (INTC:US) and 21st Century Fox Inc. shares.
Disney, based in Burbank, California, slid 1.2 percent to $66.03 at 9:55 a.m. in New York. The shares closed at $64 on Oct. 8, the day before TRC made its mini-tender offer.
To contact the reporter on this story: Crayton Harrison in New York at email@example.com
To contact the editors responsible for this story: Nick Turner at firstname.lastname@example.org; Anthony Palazzo at email@example.com