Schlumberger has recommended that shareholders reject a mini-tender offer by TRC Capital Corporation.
The Canadian investment firm made an offer to purchase up to 2 million shares of Schlumberger stock for a price of $65.63 per share, which was 4.3% below closing price on 16 June this year – the last trading day before the offer was made.
The company recommends that shareholders reject the offer as it is below the current market price for the stock.
The mini-tender is looking to buy less than 5% of Schlumberger’s common stock, which means that avoid the disclosure requirements and procedural protections of the Securities and Exchange Commission (SEC).
The SEC also cautions that such an offer could be made to catch investors off guard.
TRC Capital made a similar offer for ExxonMobil shares in March this year, with the offering price 4.42% lower than market value at the time.