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Philips tells US investors to be wary of unsolicited share offer below market price

By The Associated Press  | February 03, 2012
Exterior view of the Philips headquarters in Amsterdam, Netherlands, Monday Jan. 24, 2011. THE CANADIAN PRESS/AP, Peter Dejong
Exterior view of the Philips headquarters in Amsterdam, Netherlands, Monday Jan. 24, 2011. THE CANADIAN PRESS/AP, Peter Dejong

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.

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