Walt Disney Co. asked its shareholders on Tuesday to disregard a tender offer from TRC Capital Corp.
TRC, a Toronto investment company, specializes in mini-tender offers, organized attempts to buy less than 5 percent of a company’s stock. The offers require less regulatory scrutiny than an offer for a stake larger than 5 percent.
TRC has offered to buy 2 million shares, or one tenth of 1 percent of Disney’s outstanding shares, at a price of $61. That is 4.7 percent below the closing price on Oct. 8, the day before the offer commenced.
“Disney recommends that shareowners not tender their shares because the offer price is below Disney’s current share price,” the company said in a statement. “Shareowners who already have tendered their shares are advised that they may withdraw their shares by providing the written notice described in the TRC offering documents.”
TRC has announced mini-tender offers for other companies this year, including Intel Corp. and 21st Century Fox Inc., both of which urged shareholders to reject the offers.
Disney share closed down 39 cents, or less than 1 percent, to $66.44 on the New York Stock Exchange.