PayPal warns investors not to accept cut price offer for shares

By Dan Wilson September 30, 2015 - 12:20 am

PayPal is a tasty acquisition opportunity, as we’ve noted before. It may be more expensive now than eBay to snap up but that doesn’t mean people won’t try. It’s a good fit with stacks of bigger firms: Google, Apple, Microsoft and even handset makers. And must surely be a strong long term punt. (Not that we are in a position to offer trading advice on shares.)

A company, TRC, has pitched to purchase up to 3 million of PayPal’s shares at a price of $32.80 per share in cash. The price is lower than PayPal was trading on the day in question and the offer sought to buy about 0.25% of the company.

But PayPal has warned stockholders to ignore the offer for shares made by TRC Capital Corporation (TRC). It said in a press release: “PayPal does not endorse TRC Capital’s unsolicited mini-tender offer and recommends that shareholders do not tender their shares. PayPal is not associated with TRC Capital, its mini-tender offer or the mini-tender offer documentation.”

And they note that the SEC (a US authority on share dealing) has warned against such offers: “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.”

Comments are closed.

Recent Comments

3 mins ago
northumbrian: So what ! we probably break the law in some way every day ,there are...
55 mins ago
Mark: I have spoken to trading standards and law states a business even before it sells...
6 hours ago
Danny: Confused so they are saying they have created 500 new jobs over the next 12...
6 hours ago
Danny: As a seller, knowing what Amazon are like, i.e totally buyer focused for everything, and...