Mario Tama
- Johnson & Johnson (NYSE:JNJ) is urging its shareholders to reject a mini-tender offer from TRC Capital Investment Corp. of up to 1M shares.
- TRC Capital’s cash offer is $151.23 per share. J&J shares closed Thursday at $152.50. On April 2, the day before the offer was made, shares closed at $157.73
- The healthcare giant recommends that shareholder reject the unsolicited offer “because the offer is at a price below the current market price for Johnson & Johnson;s shares and subject to numerous conditions.”
- J&J (JNJ) noted that mini-tender offers aim to acquire less than 5% of a company’s outstanding shares, thereby skirting SEC disclosures and other requirements.
- “The SEC has cautioned investors that some bidders making mini-tender offers at below-market prices are ‘hoping that they will catch investors off guard if the investors do not compare the offer price to the current market price,’” J&J (JNJ) said in a news release.