Sun Microsystems moved quickly today to distance itself from an investment firm's 'unsolicited' move to acquire 25 million of its shares - one per cent of its outstanding common stock.
According to Sun, it has just been notified of an unsolicited 'mini tender' offer statement dated 24 June, through which TRC Capital Corporation, a private Canadian investment company, has offered to purchase the shares from existing stockholders.
"Sun does not recommend or endorse this offer, and Sun is not affiliated in any way with TRC Capital Corporation, the offer or the offer documentation," the company said in a statement.
"Sun is but one of many companies that TRC has targeted for a mini tender. These offers seek less than five per cent of a company's stock, thereby avoiding many disclosure and procedural requirements of the Securities and Exchange Commission [SEC]."
SEC has said that mini tender offers "have been increasingly used to catch investors off guard", while Sun warned that investors "may end up selling their securities at below market prices".
Sun urged its shareholders to consult with their own brokers to obtain current market quotations for their shares and to give careful consideration before selling their holdings under the terms of TRC's offer.
It also advised them to review the SEC's regulatory concerns about mini tender offers.
Eleven 'normal' outer moons, and one described as 'oddball' found circling Jupiter
Scientific discovery has found a quadrillion tonnes of diamonds in the earth's mantle
Mobile payment app makes users' details public by default
2,400 signatures gathered against the development and production of lethal robots