Caterpillar Offers Caution on Unsolicited Mini-Tender Offer

Dec 12, 2018

Caterpillar is offering caution and guidance to its shareholders. The company says it’s received notice of an unsolicited mini-tender offer by Baker Mills.

The offer aims to purchase up to 35,000 Caterpillar common shares. That’s a fraction of Caterpillar’s outstanding shares and does not trigger many SEC investor protections.

Caterpillar reports the offer of $98.00 per share in cash is approximately 20-percent lower than the closing price of common shares November 23rd.

Caterpillar stock was $122.32 per share before Baker Mills’ offer started. The company says it does not endorse the unsolicited offer and recommends shareholders do not tender their shares. 

Baker Mills made similar offers for other companies' shares. The SEC has cautioned investors that some bidders make mini-tender offers at below-market prices to “catch investors off guard.”