Share:
POST
TWEET
SHARE
SHARE
EMAIL

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.

Tamebay eBooks
Concise, focused information