RIM told its shareholders to reject a mini-tender offer from TRC Capital to purchase up to .5 percent of RIM's outstanding shares. TRC offered to buy up to $1 million of the shares for $57.91 each, an almost 3 percent discount from the November 1 closing price of $59.61. TRC made the low-ball offer on November 2. In its statements to the shareholders, RIM noted that it had no affiliation with TRC and that the offer came unsolicited. It also said that securities regulators have given warnings about such mini-tender offerings and that the shareholders should be sure to consult investment advisors before reaching any final decisions.
TRC has a history of mini-tender offers, most recently making a similar bid to purchase the stock of Ameriprise Financial at a 4.1 percent discount earlier this month. Large investment groups looking to get a piece of RIM on the cheap is surely something RIM could do without right now as it continues its patent infringement case with NTP and faces a potential injunction on its wireless email service. However, one of the company's co-CEOs recently reassured investors that it has a software fix ready to get around the disputed patents.
For more on the RIM, NTP saga:
- take a look at this article from Red Herring
PLUS: RIM nonplussed by Nokia's Intellisync acquisition. Article