Marvell Asks Shareholders to Reject Offer

Marvell Technology Group said it recommended shareholders reject a mini-tender offer by TRC Capital to purchase up to 6 million of the chipmaker’s shares. TRC Capital intends to buy about 1% of Marvell at $15 per share. Marvell shares were up 1% at $16.01 in premarket trade on Monday, after closing at $15.84 on Friday on the Nasdaq.

(Reuters) – Marvell Technology Group Ltd said it recommended shareholders reject a mini-tender offer by TRC Capital Corp to purchase up to 6 million of the chipmaker’s shares.

TRC Capital intends to buy about 1 percent of Marvell at $15 per share. Marvell shares were up 1 percent at $16.01 in premarket trade on Monday, after closing at $15.84 on Friday on the Nasdaq.

The offer price was 5 percent below the closing price on March 22, the approximate date of commencement of the offer, Marvell said in a statement.

Mini-tender offers are designed to acquire less than 5 percent of a company’s outstanding shares, thereby avoiding many disclosure and procedural requirements of the U.S. Securities and Exchange Commission.

TRC Capital has made similar offers for publicly traded companies in the past, which have been rebuffed.

In February, cellphone chip supplier Qualcomm Inc and Dutch consumer electronics giant Philips rejected similar mini-tender offers by TRC Capital.