Express Scripts Gets "Mini-Tender" Offer
Apr 9th 2013 6:25PM
Updated Apr 9th 2013 6:32PM
Express Scripts is attempting to resist the entry of a potential buyer. The company has received an unsolicited "mini-tender" offer for a block of its shares from TRC Capital, which has offered to buy up to 2 million shares of the company, roughly 0.24% of the outstanding amount, at $55.75 apiece.
Express Scripts is recommending that its shareholders reject the bid. It pointed out that TRC Capital's offer was nearly 3% below the stock's closing price of $57.27 on April 8.
TRC Capital is known for its use of "mini-tender" offers, a practice that has aroused some controversy. Since such bids are for less than 5% of a company's stock, they avoid numerous SEC procedural and disclosure requirements.
The article Express Scripts Gets "Mini-Tender" Offer originally appeared on Fool.com.Fool contributor Eric Volkman has no position in Express Scripts. The Motley Fool recommends and owns shares of Express Scripts. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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