ADM Recommends Rejection of Below-Market-Price Mini-Tender Offer by TRC Capital Corporation
DECATUR, Ill.--(BUSINESS WIRE)--Archer Daniels Midland Company (NYSE: ADM) has been notified of an unsolicited “mini tender offer” made by TRC Capital Corporation (TRC) to ADM shareholders to purchase up to 3,000,000 shares of ADM common stock at a price of $24.60 per share. TRC’s offer price represents a discount of $1.22 per share, or 4.73 percent, below ADM’s closing price of $25.82 on June 30, 2010, the day prior to the date of the offer. The shares sought by TRC represent approximately .47 percent of ADM’s total outstanding shares of common stock.
ADM recommends that shareholders not tender their shares because the offer price is below ADM’s current share price, and urges shareholders to obtain current market quotations for their shares of ADM common stock, consult with their financial advisor and exercise caution with respect to TRC’s offer.
The Securities and Exchange Commission (SEC) has issued an investor alert regarding mini-tender offers, noting that in making the offers at below-market prices “bidders are hoping that they will catch investors off-guard if the investors do not compare the offer price to the current market price.” The SEC’s investor alert can be found on the SEC Web site at http://www.sec.gov/investor/pubs/minitend.htm.
According to the SEC, mini-tender offers are for less than 5 percent of a company’s stock and typically do not provide the same investor protections required of larger tender offers, including the filing of disclosure and other tender offer documents with the SEC and other procedures mandated by U.S. securities laws.
ADM does not endorse this unsolicited mini-tender offer, and ADM is not associated in any way with TRC, the mini-tender offer or the offer documentation. ADM shareholders who already have tendered their shares are advised that they may withdraw their shares by providing the written notice described in the TRC offering documents prior to the expiration of the offer, currently scheduled for 12:01 a.m. Eastern time on July 30, 2010.
Every day, the 28,000 people of Archer Daniels Midland Company (NYSE: ADM) turn crops into renewable products that meet the demands of a growing world. At more than 230 processing plants, we convert corn, oilseeds, wheat and cocoa into products for food, animal feed, chemical and energy uses. We operate the world’s premier crop origination and transportation network, connecting crops and markets in more than 60 countries. Our global headquarters is in Decatur, Illinois, and our net sales for the fiscal year ended June 30, 2009, were $69 billion. For more information about our Company and our products, visit www.adm.com.
Archer Daniels Midland Company
ADM Media Relations, 217-424-5413