Mumbai: Advanced Micro
Devices (AMD) has received a "mini-tender" offer from TRC Capital Corporation
to purchase up to 5 million shares of the company''s common stock, which represents
approximately 0.9 per cent of its outstanding shares.
California-based AMD said TRC''s offer of $13.25 per share was more than 5 per
cent below the $14.02 per share closing price of AMD stock on October 10, the
day before the "mini-tender" offer commenced and approximately 9 per
cent below the $14.55 per share closing price of AMD on October 18, 2007.
said it is in no way associated with the offer and has cautioned shareholders
against tendering shares in response to the below-market offer. AMD stockholders
who have already tendered have been advised to withdraw their shares by providing
written notice described in the TRC Capital Corporation offering documents prior
to the expiration of the offer currently scheduled for 12:01 a.m., New York City
time, on November 9.
Capital usually makes "mini-tender" offers for the shares of other companies
for its profit. These offers are devised to seek less than 5 per cent of a company''s
outstanding shares, thereby avoiding many procedural and disclosure requirements
of the Securities and Exchange Commission (SEC). A five per cent acquisition of
shares falls below the SEC''s threshold to provide such disclosure and procedural
protections for investors.
SEC has issued an investor alert regarding these "mini-tender" offers,
noting that "some bidders make "mini-tender" offers at below-market
prices, hoping they will catch investors off guard if the investors do not compare
the offer price to the current market price." Investors are urged to consult
their brokers or financial advisors on such matters.
Ontario Securities Commission has also issued an advisory titled "Approach
mini-tenders with caution!"
Micro Devices is a leading global provider of innovative processing solutions
in the computing, graphics and consumer electronics markets.