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Yet another stock-market scam - mini-tender offers

Asia Analytica
Asia Analytica5/8/2020 06:30 AM GMT+08  • 6 min read
Yet another stock-market scam - mini-tender offers
When an offer appears too good to be true, it usually is. We were reminded of this little bit of wisdom just this week.
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(May 8): When an offer appears too good to be true, it usually is. We were reminded of this little bit of wisdom just this week. And we are sharing our experience with readers, to serve as a reminder that we must remain vigilant at all times.

On April 20, the Global Portfolio received an interesting proposition that came through the legitimate broker email channel. The letter of offer was a one-pager and consisted of the basic information — that Ponos Industries LLC was offering to purchase up to 500,000 shares of The Boeing Co at US$180 a share in cash. If more than 500,000 shares were tendered, the offeror would accept the shares on a pro rata basis. Acceptance of the offer had be conveyed to the broker by May 4.

The last close price for Boeing that day was US$154, which means the offer was at a smart 16.8% premium to market. Easy money.

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