martyn_williams
Senior Correspondent

Sun says it’s target of mini-tender offer

news
Jul 15, 20041 min

Canadian investment company seeks to buy up to 25 million shares in Sun

Sun Microsystems Inc. has received an unsolicited mini-tender offer from a Canadian investment company, the company said late Wednesday.

The mini-tender from TRC Capital Corp. was dated June 24 and seeks to buy up to 25 million shares, or less than one percent, of Sun’s outstanding common stock, Sun said in a statement.

Such offers avoid some disclosure and procedural requirements of the U.S. Securities and Exchange Commission (SEC) because they seek less than 5 percent of a company’s shares, according to the SEC.

The company said it does not recommend the offer and is not affiliated in any way with TRC Capital. It also pointed investors to an SEC document aimed at investors and covering mini-tender offers.

The document says in part that mini-tender offers “have been increasingly used to catch investors off guard” and that investors “may end up selling their securities at below-market prices.”