"Mini-Tender" Offered For MGM Resorts Stock
A Toronto-based investment company is offering to purchase up to three million shares of MGM Resorts International, at a rate just below the company’s current stock price.
TRC Capital Corporation is offering to buy up to five percent of MGM stock, a practice known as a "mini-tender" offer.
"Mini-tenders" are just small enough to avoid much of the legal oversight of the Securities and Exchange Corporation.
In a statement issued Thursday afternoon MGM recommended rejection of the offer, saying it is about four percent below the company’s current price per share of common stock.
TRC has made two other mini-tender offers in October, and past offers have included Yahoo, AT&T, and PayPal.
MGM closed Friday at $29.74, down just over a percentage point.