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SUPERVALU Inc. Message Board

  • goombahloombah goombahloombah Jan 16, 2013 10:22 AM Flag

    The Tender Offer

    Seems to be much confusion on the board about the Tender.

    Symphony will start the tender within 10 days of the 10th. (Could be today - could be tomorrow - anytime between now and the 20th.)

    It is my understanding that tenders like this usually run for 30 days. (Could be 45 days - could be 60 days - we'll know soon.) You won't miss out cause you were away from your computer for the weekend.

    Stock tendered is based on the ratio of stock tendered and 30%. It won't be first come - first serve.

    ie: If 60% gets tendered (offered to them at 4$) and you put in all your stock they'd buy 50% of your stock. If only 30% gets tendered to them - they'd buy all the stock you offered them.

    I suspect the share price will creep up as the end date draws near.

    Theoretically shorts won't have to cover although they will feel the pain, and there could be a nice squeeze after the tender is over and they have to find new shares to borrow as tendered stock will be gone. I do not know if shares offered to them would become unavailable to short, and neither did the Ameritrade Rep I just got off the phone with...

    I'd guess ~15% of the stock is tied up in index ETFs which won't sell in the Tender. (Yahoo shows 10.38% but there are likely more smaller copy cat funds). Also possible that many of the big boys who have longer views will hold, so us retailers might just see most of our shares go if tendered.

    The press release is at cerebruscapital

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    • So thanks for the clarification on the 20days. By reading the PR it seemed like they would start the Tender offer within 10days, but it wouldnt close until the actual deal closed in Q1. But that didnt make sense to me.

      So let me ask this. Why does Yahoo read the %held by institutions and funds at 101%? How is this possible? And will it affect the tender offer? and why is it different from the calculation I get by adding all of the individual holdings listed on Yahoo for institutions and funds of 52%. Does the 101% somehow include the shares shorted by institutions? Seems a little odd to me.

      The more I look at these #'s the more concern I get that they will not meet the 19.9% for the tender offer.

      Sentiment: Hold

      • 1 Reply to city2ville
      • In the United States, tender offers are regulated by the Williams Act. SEC Regulation 14E also governs tender offers. It covers such matters as:

        1. the minimum length of time a tender offer must remain open
        2. procedures for modifying a tender offer after it has been issued
        3. insider trading in the context of tender offers
        4. whether one class of shareholders can receive preferential treatment over another

        So, tender offer usually last one month and it is not FIFO (fist in first out). all sharehilders, small or big are treated equally when tender is expires.

        Sentiment: Strong Buy

4.50+0.04(+0.90%)Oct 21 4:02 PMEDT