Cardinal Health Inc. asked shareholders to reject an unsolicited mini-tender offer from Canadian investment firm TRC Capital Corp. to buy up to 2 million of the company's shares.
TRC Capital's offer of $65.85 per share is 4.48% below Cardinal Health's stock price on March 2, the last trading day before the firm commenced its offer, the Dublin, Ohio-based drug distributor said in a statement.
The 2 million stocks represent 0.64% of Cardinal Health, meaning TRC Capital is not required to make certain disclosure announcements under applicable U.S. laws.
TRC Capital recently launched similar mini-tender offers for at least two other healthcare companies: Incyte Corp. and Thermo Fisher Scientific Inc.
Both companies also asked shareholders to reject the offers on the account of being below the prevailing market price of their shares.
The U.S. Security and Exchange Commission warns that mini-tender offers can be used to catch investors off guard, who may end up selling their securities at below-market prices.
