Mini-tender offer for shares - less than market price
Discussion
Am I missing something here? I hold some Aviva shares and was informed that a Mini-Tender offer would be received from a company called Litani.
The offer was 18% below the market price at the time. Letter received today and is now 25% below market price.
Under what circumstances would anyone sell to them rather than a normal trade?
I assume there has got to be a circumstance where this works for people or is there something else at play?
Intrigued.
The offer was 18% below the market price at the time. Letter received today and is now 25% below market price.
Under what circumstances would anyone sell to them rather than a normal trade?
I assume there has got to be a circumstance where this works for people or is there something else at play?
Intrigued.
thr32 said:
I know that the offer is poor but that is why I raise the question about why would anyone go for it. The letter from Litani spells out that the offer is below market price and Aviva have also communicated saying don't do it.I assume it is worth Litani investing the cost in this and other offers but can't see how it ever works.
thr32 said:
Googling it - again - the backdrop appears to be that Aviva has a large base of small retail shareholders dating from the Norwich Union demutualisation, who it may perceive as being vulnerable to postal solicitation
That's me. I'm nor selling at the Litani offered price.R.
I'm astounded that it's allowed at all. Stock market rules say that "offers" to buy shares above a certain percentage (usually 5%) of the company are tightly regulated. However, smaller offers are not.
What a bunch of chancers. I'm surprised it's not fraud. I suppose it's no different from the chancers who advertise on TV saying "we'll buy your gold" - guess who's paying for the expensive TV ad's - or the people who ring front door bells and make low ball offers for antique furniture.
What a bunch of chancers. I'm surprised it's not fraud. I suppose it's no different from the chancers who advertise on TV saying "we'll buy your gold" - guess who's paying for the expensive TV ad's - or the people who ring front door bells and make low ball offers for antique furniture.
A bit more digging shows Aviva went to court to try and reject the request by Litani for the register of members. They lost because Litani were deemed to request the register for "proper purpose". The court also said it was not their job to determine the desirability of the offer.
I can see how the more vulnerable, who maybe had the shares for years and may even have misplaced the certificates, could see the benefit of filling the forms and collecting some money.
Whilst not a scam it is a bit unsavoury.
I can see how the more vulnerable, who maybe had the shares for years and may even have misplaced the certificates, could see the benefit of filling the forms and collecting some money.
Whilst not a scam it is a bit unsavoury.
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