Praxair recently received notification of an unsolicited tender offer by TRC Capital Corporation of Toronto to purchase shares of common stock of Praxair at $103.25.
Dubbed a “mini-tender” offer, the North American industrial gas company has responded by recommending against shareholders tendering their shares in response to TRC Capital’s offer. At $103.25, the offer represented a 4.5% decline on Praxair’s closing price on 26th April 2011; the day prior to the offer.
In a press statement Praxair commented, “Praxair understands that TRC has made numerous unsolicited mini-tender offers in the past for stock of other companies at a discount to the market price. Mini-tender offers, such as this one by TRC, are offers to acquire less than 5% of a company’s outstanding shares and therefore avoid many of the investor protections of the Federal Securities laws and rules of the Securities Exchange Commission (SEC).”