Hanesbrands responds to mini-tender offer by TRC Capital
04 Oct '06
2 min read
Hanesbrands Inc said that it has been notified of an unsolicited "mini-tender offer" to Hanesbrands stockholders to buy Hanesbrands shares at a below-market price by TRC Capital Corporation.
The mini-tender offer is for up to 2 million shares, or approximately 2.1 percent of Hanesbrands outstanding shares.
Hanesbrands does not recommend or endorse this unsolicited mini-tender offer. Hanesbrands is not associated in any way with TRC Capital Corporation, the mini-tender offer or the offer documentation.
TRC Capital's offer price in the mini-tender is $21.50 per share. The offer price is 3.9 percent below the closing price of Hanesbrands stock on Sept. 26, 2006, the day prior to the date of the offer, and 4.4 percent below yesterday's closing price of $22.49.
Mini-tender offers, such as this one by TRC Capital, are tender offers for less than 5 percent of a company's stock and typically do not provide the same investor protections required of larger tender offers, including the filing of disclosure and other tender offer documents with the Securities and Exchange Commission and other procedures mandated by U.S. securities laws.
Hanesbrands urges investors to obtain current market quotations for their shares of common stock, to consult with their financial advisor and to exercise caution with respect to TRC Capital's offer.
The SEC has issued the online brochure "Mini-Tender Offers: Tips for Investors" regarding mini-tender offers, noting that often in making the mini-tender offers at below-market prices "bidders are hoping that they will catch investors off guard if the investors do not compare the offer price to the current market price."
Hanesbrands stockholders who already have tendered their shares are advised that they may withdraw their shares by providing the written notice described in the TRC Capital offering documents prior to the expiration of the offer currently scheduled for 12:01 a.m. EDT on Oct. 26, 2006.
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