Biotech giant Amgen warned investors of a so-called “mini-tender” offer by TRC Capital Corp. that seeks to buy half a million of the company’s shares at below-market prices ahead of its third quarter earnings.
The unsolicited offer is dated Oct. 11 and offers to purchase up to 500,000 of Amgen common stock at $192 per share, the company said, which is 5.5 percent below the company’s Oct. 23 closing price of $203.32. Amgen advised investors not to participate in the offer.
Mini-tender offers are designed to avoid regulatory disclosure requirements by offering to purchase less than 5 percent of a company’s stock, and potentially trick investors into selling at a loss, according to the U.S. Securities and Exchange Commission. The offer represents less than one percent of Amgen’s 610 million outstanding shares.
Amgen is set to report third quarter earnings after the market closes Oct. 29.