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SUPERVALU Inc. Message Board

  • peaktickets peaktickets Jan 16, 2013 12:33 PM Flag

    The Tender Offer specifics and logistics

    There has not been a single post here that addresses these questions and concerns. Posters that keep reposting the broad brush strokes are not helping anybody understand the nitty gritty details. We all know 30% max and 19.9% min. We agree that in theory large share holders and small share holders are to be treated equally, but that is never the case. Access to information, timing, ease of transactions, cost of transactions, always favor large share holders.

    Case in point is all the posters here looking for answers on how this tender will go down. I don't these posters are fund managers, do you?

    These are legitimate questions that are not answered by any of the current public information out regarding the tender offer.

    How do I offer my shares?

    Is it my responsibility to contact my broker?

    Will I be contacted? If yes, how? By mail? By phone? By email?

    What if I don't have an actual broker? What if I use Scott Trade, Etrade, etc....

    When will I actually receive my payment and my untendered shares back?

    How will I receive payment? Will funds go into my brokerage account or will I receive a check?

    If I decide to tender shares at the opening of the tender period can I change my mind before the tender period closes?

    What fees are associated with the tender? It can't be free to handle all of these transactions. Who pays and how much?

    I fail to see how asking any of these questions is spreading fear or portraying negativity toward the tender offer. Why wouldn't anyone want to know the answers to these types of questions before going forward with an accetpance or refusal of the tender?

    I agree that the broad strokes and general terms are clear. If anyone "honestly knows" not just guesses how the details will work than please answer any or all of the above questions.

    Thanks.

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    • I did tender my shares for another company that was buying 30% of its shares.

      1- You just call your broker and ask him to tender your shares (scottrade, Fidelity, TD Ameritrade..)
      2- There is no fee for tenderring your shares.
      3- Most of the time, it only takes only 1 day to see cash in your account.
      4- I don't know how to withdraw your tender if you change your mind. Basically, the answer is no since if the price goes above $4 then every body wants to do it. It is like selling shares and then see the price is higher then you can't get your lower price back.
      5- SVU will announce start date and expiration of the tender (usually 30 days).
      6- If more than 30% is tenderred then it will be prorated.

      Sentiment: Buy

      • 1 Reply to med_investor
      • OK Not sure this provides real specifics but thanks for the effort.

        1- You just call your broker and ask him to tender your shares (scottrade, Fidelity, TD Ameritrade..)

        So the responsibility is on the share holder? They will not be conatcted?

        2- There is no fee for tenderring your shares.

        Barclays is handlind the deal for Cerberus. Are they working for free? Every individual account holder wishing to tender shares must call their broker and then the broker is obligated to execute your tender )in whole or in part) for no charge? Wow. That's amazingly kind of them.

        3- Most of the time, it only takes only 1 day to see cash in your account.

        Ok And you also get your remaining untendered shares back in one day also? Wouldn't they have to wait until the close of the 30 day period (using your timeline) to even determine the total amount and percent of outstanding shares tendered? Getting cash in 1 day is prepostorous likely even if you waited until the very last day to tender.

        4- I don't know how to withdraw your tender if you change your mind. Basically, the answer is no since if the price goes above $4 then every body wants to do it. It is like selling shares and then see the price is higher then you can't get your lower price back.

        Soundls like we agree that there is some form of "locking up shares", just not sure for how long.

        5- SVU will announce start date and expiration of the tender (usually 30 days).

        This is the questionable area. What happens during this time period specifically. I don't find your explanation very detailed and way too simplified. Has anyone yet called their broker about this? Called Cerberus? Called Barclays? Called Supervalu?

        6- If more than 30% is tenderred then it will be prorated.

        I think everyone gets it that you can tender at least 30% of your shares if you offer 100% of your shares.

        You are basically saying no paperwork, no hassle, no waiting, no fees, no problem. I say no way.

        Any other "credible" contributions for how the logistics and specifics of the tender will operate?

 
SVU
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