Marvell asks shareholders to turn down TRC offer
SANTA CLARA, Calif.—Chip maker Marvell Technology Group Ltd. is recommending that its stockholders turn down an unsolicited mini-tender offer by Canadian company TRC Capital Corp.
In a mini-tender offer, a buyer makes an offer for less than 5 percent of another company's outstanding shares. This is often done so as to avoid many of the disclosure and procedural requirements of the Securities and Exchange Commission.
Marvell said Monday that TRC is offering to buy up to 6 million of its shares, or about 1 percent of Marvell Technology's outstanding stock, for $15 per share. The offer price is about 6 percent below Marvell's Friday closing price of $15.84.
The offer is set to expire on April 24.
In February, Royal Philips Electronics NV warned investors to be cautious of an unsolicited offer by TRC for up to 4 million of its shares.
Shares of Marvell Technology added 8 cents to $15.92 in morning trading Monday. Its shares rose to a 52-week high of $16.86 in early February. They fell as low as $11.23 in early August.