Oct. 15 (Bloomberg) -- Walt Disney Co. recommended that investors reject an offer to buy a small portion of its stock for 4.7 percent below market value.
The U.S. Securities and Exchange Commission has warned against such mini-tender offers, which bidders use to “catch investors off guard if the investors do not compare the offer price to the current market price,” Disney said today in a statement.
TRC Capital Corp., a closely held investment firm, made the proposal last week to acquire about 2 million Disney shares for $61 apiece. Toronto-based TRC has made similar offers this year for Intel Corp. and 21st Century Fox Inc. shares.
Disney, based in Burbank, California, slid 1.2 percent to $66.03 at 9:55 a.m. in New York. The shares closed at $64 on Oct. 8, the day before TRC made its mini-tender offer.
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