AMSTERDAM - Royal Philips Electronics NV has warned investors to be wary of an unsolicited offer for up to 4 million of its New York registry shares made by Canadian company TRC Capital Corp.
The move, known as a "mini-tender" offer, is an approach to buy less than 5 per cent of a company's outstanding shares. It does not trigger the same rules and shareholder protections that a bigger offer would.
Such offers can be a chance for a large shareholder to sell at a guaranteed price, but many are made in hopes of duping unwary small shareholders one way or another, according to the SEC.
The TRC offer is for $19.25 per share. Philips is currently trading around $20.74.
Philips spokesman Steve Klink said the company had no connection with the offer and doesn't endorse it.