Asarco Responds to Below-Market Tender for Shares.NEW YORK--(BUSINESS WIRE)--June 28, 1999-- ASARCO ASARCO American Smelting and Refining Company Incorporated (NYSE NYSE See: New York Stock Exchange :AR) today strongly advised shareholders to reject an unsolicited un·so·lic·it·ed adj. Not looked for or requested; unsought: an unsolicited manuscript; unsolicited opinions. unsolicited Adjective , below-market tender for up to 2% of the Company's outstanding common stock by Peachtree Partners, a Phoenix-based firm. The tender is reportedly at a price of $13.25 per share, a 22% discount to the recently-quoted market price for Asarco's stock. Asarco Chairman and Chief Executive Officer, Francis R. McAllister said, "Asarco recommends that shareholders reject the tender offer because the price is inadequate and does not reflect fair value. A shareholder who wishes to sell his or her shares of Asarco stock can realize substantially better prices by selling on the open market rather than through the tender offer." Similar "mini-tender" offers for other companies' stock have been reported in the financial press. In a mini-tender offer mini-tender offer An offer to purchase less than 5% of a company's stock. Investors are at greater danger in a mini-tender offer because it is not subject to many of the SEC disclosure and procedural protections that apply to traditional tender offers. , the prospective purchaser offers to buy a company's stock from shareholders at a discount "for investment purposes" and then resells the stock at market price, pocketing the difference. ASARCO Incorporated is one of the world's leading integrated producers of copper, specialty chemicals A Specialty chemical is a chemical produced for a specialized use. They are produced in lower volume than bulk chemicals, of which petrochemicals, made from oil feedstocks, are the most common. However, both are produced in a chemical plant. and aggregates. |
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