(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.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook