EQUITY investor TRC Capital Corp. has made a "mini-tender" offer to shareholders in Kraft Foods Group Inc. to acquire as many as 2 million shares of the company, representing 0.34% of Kraft's outstanding stock, according to an announcement from Kraft.
A mini-tender basically is an offer that's made below a company's current stock value and is not subject to investor protections, such as disclosure statements and other filings at the U.S. Securities & Exchange Commission (SEC), according to an SEC guidance.
Such an offer seeks to catch shareholders "off guard" by encouraging them to tender their stock without comparing the offer price to the company's current price, SEC said.
TRC has offered to acquire Kraft's shares for $44 per share, 4.37% below Kraft's closing price on Dec. 13.
Kraft has urged shareholders to reject the offer or, for those who already have tendered their stock, to withdraw their tender, which they can do at any time prior to 12:01 a.m. on Jan. 16.
Kraft, headquartered in Northfield, Ill., was established in October when Kraft Foods Inc. spun off its North American foodservice and grocery business (Feedstuffs, Oct. 8). It has interests throughout the supermarket, from beverages to Kraft cheeses and Oscar Mayer meats to center-of-the-store groceries.
Its first-year sales are estimated to total $19 billion, making it the fourth-largest packaged foods company in the U.S.