Food and drink maker PepsiCo has said it was notified of a mini-tender offer made by TRC Capital and is advising shareholders not to tender their stock because the bid is below market value. PepsiCo said TRC made an offer for 2 million shares, or about 0.13 percent of the company’s outstanding stock, at a price of $53.65 per share. PepsiCo stock closed at $57.86 on Thursday, making the offer a 7.3 percent discount. PepsiCo said TRC’s offer expires after midnight Oct. 2, and shareholders can withdraw their offers as described in TRC documentation, according to the Associated Press. Mini-tender offers are bids for less than 5 percent of a company’s stock. The SEC said the offers are often made at below-market prices by firms that have not secured the funds to finance their bids. The agency says shareholders are also not always given the right to withdraw their offers.
PepsiCo to Shareholders: Reject TRC Offer
PepsiCo said TRC made an offer for 2 million shares, or about 0.13 percent of the company’s outstanding stock, at a price of $53.65 per share.