geo...I've never fallen for one of those tender offers. Other CEFs we own have tried these offerings also. As best I understand , they are hoping to lure investors to buy at some rediculos offer even if it means a hell of a loss for the investors. Say you bought NRO at 10 and it tanks at 4. Mgt decides to hold a tender offer at 4.30. Mgt is banking that some investors will fall for it despite all that loss for the investor.NRO then comes out way ahead of the game. Unless one is desperate for cash, don't ever fall for that type of scheme. That is how I see NRO making this planned offer. We own 5000 shares of NRO, with the majority having been bought at 1 to 1.50 a share. I have better plans for NRO than to sell at a rediculos price offering. Good luck to you. retiredafe8.
You are incorrect in thinking they are trying to cheat investors somehow with the tender offer. If they wanted the stock cheaply, they could simply go in to the open market and buy the stock for today's price rather than marking it up and paying more in a few weeks. The purpose is to strengthen the stock price overall by showing faith via ownership, reducing the float, and closing the gap between the NAV and discounted market price of the position. You are right about not selling though. Watch what the stock does when they bump the div by one penny in the second half of the year. Then it is off to the races!!!!!!!!!!!!!!!