(Reuters circulated the following article on May 11.)
NEW YORK — Union Pacific Corp., the largest U.S. rail freight operator, on Tuesday urged shareholders to reject a below-market “mini-tender” offer from TRC Capital Corp. to acquire up to 2 million shares of its stock.
Union Pacific, based in Omaha, Nebraska, said the Toronto-based TRC is offering to acquire the shares for $56.80 each, a slight discount to the company’s closing price of $56.92 on the New York Stock Exchange Tuesday.
TRC Capital has made numerous mini-tender offers, or offers to acquire less than 5 percent of a company’s stock, almost always at below-market value, over the past few years ranging from food and consumer products company Sara Lee Corp. to retailer Gap Inc.