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Technology Stocks : TAVA Technologies (TAVA-NASDAQ)

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To: JDN who wrote (30299)	4/13/1999 4:35:00 PM
From: Patrese	Read Replies (3) of 31646

Greetings to all, Regarding the Growth Capital Issue: What we have here is what is called a minitender offer. It is designed to prey on the uniformed investor. A minitender offer is for less than 5% of the stock and a discount to the current trading price on a first come first serve basis within a limited time span. These offers are mainly targeted at elderly or unsophisticated investors that don't realize that when they receive the offer it is at a lower price. Even if they get only a few thousand shares these minitenders make a handsome profit. The premise goes something like this. All one needs to do is send a letter to the Depository Trust Co (that is the central securities depository in NY) and make an offer for less than 5% of the company's shares and at any price they want. (Less than %5 and the offer is not subject to detailed and expensive reporting requirements). The DTC then sends the info to its members which are banks and brokerages. Brokerage firms must give this info to their customers as part of their fiduciary responsibilities. The individuals who make the minitender offer don't even have to put up their own money. Sometimes they can sell the shares they receive first before they pay the surrendering stockholder. This is not strictly a phenomenon targeting small caps. Well known companies have been targeted as well. There have been so many complaints that the SEC recently has imposed a $2700 filing fee and are considering altering the regulations so these kind of offers will be subject to a higher disclosure and filing standard. When this happens, targeted companies are now beginning to issue press releases to warn their shareholders of this scam and to make them aware that the price is a discount over the current share price. In other words, we've been slimed!! Patricia P.S.: For more detailed info there are various articles in Barrons and the Wall Street Journal and you can also contact the SEC or your broker.

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