Amec’s members alert BM&FBOVESPA to aggressive tender offers

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In a letter sent to the Brazilian Stock Exchange on February 3rd, Amec – the Association of Capital Market Investors – calls the attention, without mentioning any concrete case, to tenders offers in which sellers try to circumvent the equitable treatment to the buyers through mechanisms that eventually pressure minority shareholders to transfer their shares under specific unilateral conditions.
Although Amec does not mention names, it makes direct reference to a case in which the seller threatens to withdraw the offer if shareholders opt to request a new appraisal report, in addition to imposing the condition that the two largest minority shareholders cannot accept the offer, what clearly violates the regulation that establishes that tender offers must include 100% of the company’s free float.
Amec’s members understand that the capital market’s regulators must ensure that tender offers are conducted in the companies’ best interest and, therefore, avoid any possible abuse of power.
Click here to access the President Letter 03/2017 – Aggressive Tender Offers.