InfoStream.com,
Thanks for the link. It appears to be exactly on point as to the offer I received. Didn't think it sounded quite legit and now I know it's not.
Thanks again,
Paul
"Mini Tender Offers:
Beware of offers to buy your securities at
below market prices
If someone offered to buy your securities for less than their market price would you sell to them? Of course not. But that is exactly what is happening to some investors who do not check out the prices offered in mini tender offers.
Investors need to scrutinize mini tender offers or they may end up selling their stock for less than its market price. Investors normally welcome tender offers because the people behind large tender offers often pay more than the market price so they can take over the company.
The people behind mini tender offers count on investors jumping to that conclusion, that all tender offers are above the market price. But in mini tender offers, the prices are often below the market price.
Mini tender offers, tender offers for less than 5% of a company?s stock, catch shareholders off guard. The people behind these tender offers limit them to under 5% so that they do not have to comply with many of the investor protections that are in place for tender offers over 5%. For instance, shareholders in mini tender offers don?t receive documents that describe the tender offer in detail.
Here are the steps you should take if you are asked to sell your stock, bonds, limited partnership interests, or other securities through
a mini tender offer:
Determine the market price for your securities.
For stock, you can easily get price information in many
newspapers, on-line, or from your broker or investment
adviser. For bonds, you may need to talk with your broker or investment adviser because these prices may be hard to find.
For limited partnerships, contact the general partner to get a list of firms that buy and sell the limited partnership, or ask your broker or investment adviser.
Determine the "final" tender offer price after all
deductions are taken. In some tender offers, you may
get a lower price because deductions are taken from the tender offer price for dividend payments.
Consult with your broker or other financial
adviser. Make sure you understand the terms of the tender offer before tendering your shares. Ask for any additional written information that may be available.
If you want to sell your shares, determine where
you can get your best price. Check all your
alternatives for selling your securities. For instance, compare how much you will receive if you sell through your broker versus the tender offer.
Remember that once you agree to a mini tender offer, you are locked in. If the tender offer is for less than 5% of the company?s stock, a mini tender offer, proceed with extreme caution. Unlike other tender offers, you generally
cannot change your mind after you have tendered your shares
in a mini tender offer. " |
