Re. stock symbol GLW :
The above-listed stock is part of a non-mandatory reorganization or tender offer, which requires your timely attention. For details regarding this offer, contact your local branch office. Please note that failure to advise Scottrade of your intent may result in no action being taken, and we cannot be held responsible for any resulting loss.
Confused, I sent a follow-up e-mail for details. They responded:
The voluntary tender offer for symbol GLW is for clients to receive $10.50/share of GLW. The offeror, (TRC Capital Corp.), is not registered with the SEC. The offer is subject to proration. The offer expires on 9/10/08
I think you'd have to be some kind of stupid to go for this. Not only are they offering 61% of the price (if you read the Internets, you'll find instances where TRC offers prices at a discount of 5%, not 40%) but scottrade will charge $25 to participate. Is TRC Capital Corp simply a scam to find investors who don't know the value of their stocks?
(I have a feeling that the Scottrade representative that responded to me might have typo'd the value. That's scary, but judging by some searching the real value might be $17.00 (the previous bad offer was $20.50, so $10.50 is a hybrid of the two.))
In fact, if you do search for information on the company you will find that they are skirting SEC regulation by carefully made mini-tender offers. And if you read the contract, TRC leaves itself the right to get out of the deal if the price goes lower or if it just feels like it. Got predatory?
2 comments:
Any follow up on this? Some people reported getting BAC and JPM tender offer now, not sure if it's true or not.
@luckymae: TRC makes these mini-tender offers all the time. Each time the targeted company will come out against the offer. They all seem like losing offers.
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