Summary
McDonald's Corporation issued a press release on February 4, 2015, to inform its stockholders about an unsolicited "mini-tender" offer from TRC Capital Corporation. TRC Capital is attempting to purchase up to 1.5 million shares, representing approximately 0.15% of McDonald's outstanding common stock, at a price of $86.80 per share. McDonald's strongly recommends that its stockholders reject this offer. The primary reason for rejection is that the offer price of $86.80 per share is below the current market price for McDonald's shares, specifically noting it was approximately 4.41% lower than the closing price on January 20, 2015. The company also highlights that the offer is subject to numerous conditions, including TRC Capital securing satisfactory financing. McDonald's is not affiliated with TRC Capital and advises stockholders who have already tendered shares to withdraw them before the offer's expiration on February 19, 2015.
Key Highlights
- 1McDonald's issued an alert regarding an unsolicited "mini-tender" offer from TRC Capital.
- 2TRC Capital's offer is to purchase up to 1.5 million shares (approx. 0.15% of outstanding) at $86.80 per share.
- 3McDonald's strongly recommends stockholders reject the offer as the price is below the current market value.
- 4The offer price was approximately 4.41% below McDonald's closing share price on January 20, 2015.
- 5The offer is contingent on TRC Capital securing financing.
- 6McDonald's advises stockholders who have already tendered shares to withdraw them.
- 7The company emphasizes it is not associated with TRC Capital's offer.