Watch Out For Low-Flying Tender Offers

This article analyzes a recent phenomena known as “minitender offers.” Minitender offers are tender offers of less than five percent of outstanding shares of a listed or Nasdaq company, without full disclosure, without notifying the issuer, and often at below-market prices. After reviewing a recent SEC release on the subject, this article offers steps for a stock issuer to ready itself in case a minitender offer is made for its shares.