(September 27 – 12:10 ET) – The
Canadian Securities Administrators
today issued a warning to investors
to beware of “mini-tender” offers
on the market.
“Over the last few months, there
have been a number of mini-tender
offers in Canada for various inter-
listed Canadian and American
securities. Such offers, which by
definition involve small blocks
of shares, are currently coming
from companies located in the
U.S.,” with one recently by a
Canadian company, the CSA said.
The firms buy securities below
their current market price and
then try to sell the stock on the
open market at a higher price.
Such offers do not have to be
filed with securities regulators
in the jurisdictions where they
are launched because they are
carefully limited to a very small
percentage of the shares of the
target company in circulation.
They thereby avoid regulatory
requirements for filing and
distributing investor disclosure
documents.
IE Staff
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