Kraft Foods has advised shareholders to reject a mini-tender offer from a private Canadian investment company, TRC Capital Corporation.
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Toronto-based TRC is looking to purchase up to 3m shares in Kraft, representing about 0.2% of outstanding share capital. The investment group has offered US$31 per share.
In calling on investors to reject the offer, Kraft noted late yesterday (23 April) that TRC’s offer price was 6.3% below the food group’s closing price on the New York Stock Exchange on Friday, when Kraft closed at $33.09.
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In a statement to investors, Kraft warned: “Mini-tender offers, such as this one by TRC, do not give investors the same level of protection afforded by larger tender offers. For example, in making this offer, TRC is not required to disclosure and other offer documents with the Securities and Exchange Commission (SEC) or adhere to additional procedures mandated by US securities laws.”
Kraft shares closed up 12 cents at $33.21 following news of the tender offer yesterday.
