What is a "mini-tender" offer?

A mini-tender offer is a type of tender offer where a third party offers to buy a small percentage of a company's shares, often at a discount to the current market price. These offers are typically made without the involvement or endorsement of the company whose shares are being targeted.

Why is Cardinal Health advising shareholders not to tender their shares?

Cardinal Health recommends against tendering because the offer price of $65.85 is significantly below the recent market price of $68.94. This implies shareholders would be selling their stock at a loss compared to the prevailing market value.

Can shareholders who already accepted the offer withdraw their shares?

Yes, shareholders who have already tendered their shares can withdraw them at any time before the offer's expiration on April 4, 2018, in accordance with TRC Capital's offering documents.

Is TRC Capital affiliated with Cardinal Health?

No, Cardinal Health has explicitly stated that it is not affiliated or associated in any way with TRC Capital, its mini-tender offer, or the offer documentation.

CAH 8-K SEC Disclosure

Summary

Cardinal Health Inc. (CAH) has announced its response to an unsolicited "mini-tender" offer from TRC Capital Corporation. TRC Capital is attempting to purchase up to 2,000,000 shares of Cardinal Health's common stock at $65.85 per share. This offer price is approximately 4.48% lower than the closing price of $68.94 on March 2, 2018, and represents about 0.64% of the company's outstanding shares. The company explicitly states it does not endorse this offer and strongly recommends that its shareholders do not tender their shares. Shareholders who have already submitted shares are advised that they can withdraw them before the offer's expiration on April 4, 2018. Cardinal Health has clarified it has no affiliation with TRC Capital or its mini-tender offer.

Key Highlights

1Cardinal Health received an unsolicited mini-tender offer from TRC Capital Corporation.
2The offer is for up to 2,000,000 shares of common stock at $65.85 per share.
3The offer price is approximately 4.48% below the recent closing price.
4The shares sought represent about 0.64% of outstanding common stock.
5Cardinal Health does not endorse the offer and recommends shareholders reject it.
6Shareholders who tendered shares can withdraw them before the April 4, 2018 expiration.
7The company has no affiliation with TRC Capital or its offer.

CARDINAL HEALTH INC 8-K Report, Corporate Update (Mar 9, 2018)

Summary

Key Highlights

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