Kraft urges shareholders to reject mini-tender offer

by Eric Schroeder
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NORTHFIELD, ILL. — Kraft Foods Inc. on Monday recommended that its shareholders not tender their shares in response to an unsolicited "mini-tender offer" by TRC Capital Corp. of Toronto (T.R.C.). According to Kraft, mini-tenders do not provide the same level of protection as larger tender offers, in part because the purchasers are not required to file disclosure and other offer documents with the Securities and Exchange Commission.

As part of its tender offer, T.R.C. has offered to purchase up to three million shares, or less than 0.2% of the outstanding Kraft common stock, at a price of $31 per share. T.R.C.’s offer price of $31 per share represents a 6.3% discount to the April 20 closing price of $33.09 per share on the New York Stock Exchange.

"Kraft does not endorse T.R.C.’s unsolicited mini-tender offer and recommends that stockholders not tender their shares in response to this mini-tender offer," Kraft said. The company added it is not in any way associated with T.R.C., the mini-tender offer or the offer documentation.

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