AT&T Inc. (NYSE:T) has learned that TRC Capital Corporation has made an unsolicited “mini-tender” offer, dated August 27, 2015. TRC has offered to purchase up to 3 million shares of AT&T stock at $31.30 per share, or 4.3 percent below AT&T’s closing share price on August 26, 2015. AT&T is in no way associated with TRC Capital Corporation and recommends that shareholders reject this unsolicited offer.
Mini-tender offers seek less than 5 percent of a company’s outstanding shares. This lets the offering company avoid many disclosure and procedural requirements the U.S. Securities and Exchange Commission (SEC) requires for tender offers.
On its website, the SEC has issued an alert regarding mini-tender offers. This alert advises 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.”
TRC has a history of mini-tender offers. Like its other offers, this one puts individual investors at risk because they may not realize they’re selling their shares at a discount. AT&T urges investors to get current stock quotes for their shares of AT&T, consult their financial advisors and exercise caution with respect to TRC’s offer. Shareholders who may already have tendered their shares may withdraw them by providing, prior to the expiration of the offer, the written notice described in the TRC offering documents. The offer is set to expire at 12:01 a.m. Eastern time on September 25, 2015, but TRC may extend this at its discretion.
AT&T requests that a copy of this news release be included with all distributions of materials related to TRC’s offer for shares of AT&T common stock. (Original Source)
Shares of At&t closed today at $32.32, down $0.88 or 2.65%. T has a 1-year high of $36.45 and a 1-year low of $30.97. The stock’s 50-day moving average is $34.18 and its 200-day moving average is $33.67.
On the ratings front, At&t has been the subject of a number of recent research reports. In a report released today, Macquarie analyst Kevin Smithen maintained a Buy rating on T, with a price target of $39, which implies an upside of 20.7% from current levels. Separately, on August 14, Wells Fargo’s Jennifer Fritzsche reiterated a Buy rating on the stock .
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Kevin Smithen and Jennifer Fritzsche have a total average return of -0.3% and 20.9% respectively. Smithen has a success rate of 53.8% and is ranked #2618 out of 3742 analysts, while Fritzsche has a success rate of 64.1% and is ranked #265.
Overall, 3 research analysts have assigned a Hold rating and 3 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $36.00 which is 11.4% above where the stock opened today.