RIM Warns Shareholders against Low-Ball Offer

3:58 am on November 17, 2005 | Category: Business

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Research in Motion, the maker of the popular BlackBerry email devices, has warned its shareholders against taking so called “mini-tender offers” from a company called TRC Capital.

TRC has put in offers to buy about 1 million RIM shares at below market value. If they can convince existing shareholders to go along with the deal, they can snap up about 0.5% of the company’s common shares, while avoiding certain SEC regulations.

Research in Motion has warned it shareholders against accepting such an offer, as TRC Capital has a history of acquiring shares in this manner.

“RIM wishes to inform its shareholders that it does not recommend or endorse this unsolicited offer, and RIM is not associated with TRC Capital, the offer, or the offer documentation,” read a statement from the Ontario-based PDA manufacturer.

Security regulators have also warned shareholders to stay away from mini-tender offers, and recommended that they consult an investment advisor before entering into an agreement to sell shares.

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    Published by TeleClick Enterprises
    Edited by Jeremy Maddock