FirstEnergy Corp (NYSE:FE) And The Mini Tender Offer


Dallas, Texas 05/28/2014 (FINANCIALSTRENDS) – FirstEnergy Corp. (NYSE:FE) has received notification on 21 May of the unsolicited “mini-tender offer” by the TRC Capital Corporation to buy upto 3,000,000 shares of FE common stock, or around 0.71% of the outstanding shares, at $30.15/share. The offer from TRC Capital is much below the current market-price for FE common stock. The company does not endorse the unsolicited mini-tender offer & recommends that the shareholders reject this offer. FirstEnergy Corp (NYSE:FE) recommends that the shareholders who haven’t responded to the company-TRC Capital should reject this offer without taking any action as the offer is at the price that is below the current market-price for FE shares & is subject to many different conditions.

Company recommendation

FirstEnergy Corp (NYSE:FE) also further recommends that the shareholders who have tendered shares already in TRC Capital’s offer should withdraw their shares by also providing the written notice that is described in the offering-documents before the expiration date that stated in the offer, that is Friday, 20 June 2014.The offering price of TRC Capital is 3.49% below the $31.24/share closing price of FE shares on 20 May 2014, which is a day before this offer started. Also, TRC Capital is now able to terminate or also amend the offer at any time before its expiration of this offer if some of the conditions occur.

The mini tender game

This includes any decrease in market price of company shares. The offer‘s documentation also states that this offer is subject to availability of financing on the terms that are satisfactory to-TRC Capital. The latter has also made many other similar mini-tender offers for the shares of some other companies. The Mini-tenders are 3rd-party offers that look to acquire below 5% of the outstanding shares of a company, thus avoiding numerous disclosure & procedural requirements of the SEC.

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