Eaton Recommends Shareholders Not Accept Mini-Tender Offer
07 Settembre 2005 - 2:43PM
Business Wire
Diversified industrial manufacturer Eaton Corporation (NYSE:ETN)
today strongly recommended that no shareholder should accept TRC
Capital Corporation's mini-tender offer to purchase up to 1.5
million shares of Eaton's outstanding common stock (about one
percent of Eaton's outstanding shares) at an offer price of $60.60
per share. Eaton, its officers and directors are in no way
associated with TRC or its offer or offer documents. Eaton was
notified on August 31 that TRC has commenced a tender offer at a
price lower than Eaton's closing price on August 30 of $63.25. The
offer is also less than Eaton's closing price on Sept. 6 of $64.75.
TRC's offer states that it can be withdrawn at any time if there is
a decrease in the market price of Eaton common shares. The
Securities and Exchange Commission (SEC) has said that mini-tender
offers "have been increasingly used to catch investors off guard"
and that investors "may end up selling their securities at
below-market prices." The combination of TRC's current below-market
offer price and TRC's right to withdraw the offer if the market
price of Eaton common shares declines enhances the risk that TRC
will purchase shares only if, at the time of purchase, TRC's offer
price is below market. TRC has made dozens of below-market tender
offers in the past several years. By seeking less than five percent
of outstanding shares, TRC avoids many of the disclosure and other
regulatory requirements of the SEC. The SEC has issued an investor
alert regarding mini-tender offers that can be accessed at the
SEC's Web site at www.sec.gov/investor/pubs/minitend.htm. The
Ontario Securities Commission and Canadian Securities
Administrators issued a similar investor alert at
http://www.osc.gov.on.ca/About/NewsReleases/1999/nr_19990927_mini.jsp
Shareholders with questions about this mini-tender offer or who are
considering selling their Eaton shares to TRC should consult with
their investment advisers prior to making any decisions. Eaton
would like to make broker-dealers and other market participants who
may disseminate the offer aware of (1) the SEC's recommendations to
broker-dealers at
http://www.sec.gov/divisions/marketreg/minitenders/sia072401.htm,
and (2) New York Stock Exchange Information Memo Number 01-27
issued September 28, 2001 regarding the dissemination of
mini-tender offer materials at the "Information for Market
Professionals - Information Memos" tab at http://www.nyse.com/.
Eaton requests that a copy of this press release be included with
all distributions of information relating to TRC's mini-tender
offer. Eaton Corporation is a diversified industrial manufacturer
with 2004 sales of $9.8 billion. Eaton is a global leader in
electrical systems and components for power quality, distribution
and control; fluid power systems and services for industrial,
mobile and aircraft equipment; intelligent truck drivetrain systems
for safety and fuel economy; and automotive engine air management
systems, powertrain solutions and specialty controls for
performance, fuel economy and safety. Eaton has 57,000 employees
and sells products to customers in more than 125 countries. For
more information, visit www.eaton.com.
Grafico Azioni Eaton (NYSE:ETN)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Eaton (NYSE:ETN)
Storico
Da Lug 2023 a Lug 2024