Viacom urges investors to reject mini-tender offer

Viacom has asked its shareholders to buck an unsolicited "mini-tender" offer from Canadian investment firm TRC Capital. 

"Viacom does not endorse TRC's unsolicited mini-tender offer and recommends that shareholders do not tender their shares," the struggling media company said in a release issued Wednesday. 

TRC Capital is aiming to buy as much as 2.5 million Viacom Class B shares -- or 0.72 percent of the conglomerate's Class B shares -- for $38.88 a share, which is 5.6 percent below Wednesday's closing price. 

According to Deadline Hollywood, the firm specializes in making lowball offers to unsophisticated investors, hoping to lure them into bad deals. "They count on investors jumping to the conclusion that the price offered includes the premium usually present in larger, traditional tender offers," the SEC told Deadline. Article

Suggested Articles

Comcast Spotlight, the advertising sales division of Comcast Cable, has hired Melanie Hamilton as vice president of national sales.

Video measurement and analytics company Comscore will lay off approximately 8% of its workforce as part of a plan to reorganize its technology, product and…

The big four U.S. wireless carriers don't practice their video throttling uniformly.