Mario Tama
- Johnson & Johnson (NYSE:JNJ) urges its shareholders to reject a mini-offer from TRC Capital Investment Corp. for up to 1 million shares.
- TRC Capital’s cash offer is $151.23 per share. J&J shares closed Thursday at $152.50. April 2, the day before the offer was carried out, the shares closed at $157.73
- The healthcare giant recommends shareholders reject the unsolicited offer “because the offer is priced below the current market price of Johnson & Johnson shares and is subject to numerous conditions.”
- J&J (JNJ) noted that mini-tender offerings aim to acquire less than 5% of a company’s outstanding shares, thus avoiding SEC disclosures and other requirements.
- “The SEC warned investors that some bidders who mini-bid at below-market prices hope to catch investors by surprise if investors do not compare the offering price to the current market price,” J&J (JNJ ) said in a press release.