Valero Energy Corp. said Thursday it has been notified of a mini-tender offer by TRC Capital Corp., and urged its shareholders not to tender their shares because the offer price is below market value.
The nation's largest independent petroleum refiner said TRC made an offer for up to 5 million shares, or less than 1 percent of the company's common stock, at a price of $16.55 per share. It said the offer price was 4.22 percent below to the closing price of Valero's stock on Nov. 10, the date of the offer.
Mini-tender offers are bids for less than 5 percent of a company's stock. According to the Securities and Exchange Commission, the offers are often made at below-market prices by firms that have not secured the funds to finance their bids. The agency says shareholders are also not always given the right to withdraw their offers.
Shares of Valero slid 27 cents to $17.18 in afternoon trading.