Feb. 05--McDonald's said Wednesday that it is the target of an unsolicited offer by TRC Capital to buy up to 1.5 million shares, or 0.15 percent of the Oak Brook-based hamburger chain.
McDonald's recommended investors reject TRC's bid of $86.80 per share in cash because it was 4.4 percent less than the closing price of the company's shares on Jan. 20, the day before the offer was extended.
Shares of McDonald's on Wednesday closed up 13 cents at $94.05.
Bids to acquire less than 5 percent of a company's shares from investors are known as "mini-tender" offers. McDonald's said the U.S. Securities and Exchange Commission cautions investors about mini-tender offers. The agency said on its website that the people behind such bids use them "to catch shareholders off guard."
The SEC also said the mini-tender offers are limited to less than 5 percent of the company's stock so that they don't have to comply with investor protections associated with larger offers.
According to published reports, TRC Capital is based in Canada and has a history of making mini-tender offers. Representatives of the firm could not immediately be reached for comment.
TRC's McDonald's offer expires at 11 p.m. Feb. 18.
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