Ford Tender Offer

[ArchAngel]

I just received this email from Scottrade since I own a little Ford stock. Could someone please explain to me what this means? Should I hold onto my shares or sell them? I tried researching what a tender offer entails, but it's all in a language that I just don't understand. Thanks for your insight.



Re. stock symbol / cusip - F / 345370860:
The above-listed stock is part of a non-mandatory reorganization or tender offer, which currently expires on 03/28/2012.
Where to find more information:

• For offers initiated by the company, information can often be found on the company's Web site.
• If the offer was initiated by a third party, additional information can be obtained by contacting your local branch office.
• For mini-tender offers, the US Securities and Exchange Commission has urged caution. To review an SEC educational piece entitled "Mini-Tender Offers: Tips for Investors," please go to Investor Tips: Mini-Tender Offers

If you decide to participate in this offer, you will need to inform your local Scottrade branch office no later than 10 a.m. ET on the expiration date listed above, and a $25 fee will be charged to your account. These shares must then remain in your account until the reorg/tender takes place. Please note that the expiration date for such actions is often extended and terms of the offer are subject to change.

Scottrade is not endorsing or recommending the offer, and the terms have not been reviewed to determine if accepting the offer would be in your best interest. If you do not wish to participate in this offer, notification is not required and Scottrade will take no action on your behalf. Branch Manager
Scottrade, Inc.

 

[cigardbf]

Its an offer from TRC Capital for $11.70 share. Considering its currently trading at $12.50, I would say don't sell. Here is a little about TRC from another site: "TRC’s trademark strategy is to launch an unsolicited “mini-tender” offering to buy a small percentage of a company’s stock BELOW the market price. TRC then sells any shares tendered and pockets the difference. If the share price sinks below the offer price, TRC can walk away. In fact, it can legally keep investors from backing out, literally locking up their shares until it’s profitable to buy them out."

 

[Birchtree]

Ford (F) could easily be a $30 stock by the end of the year. I'm going to go look at their new 2013 MKS for my wife.

 

[WorkFE]

Nice choice BT. Couple of folks at work swear by them. I had the Taurus Limited, traded it in for a Flex, but as far as cars go it was a nice ride. My $ accounts have not moved up to the Lincoln Class yet.

 

[ArchAngel]

Its an offer from TRC Capital for $11.70 share. Considering its currently trading at $12.50, I would say don't sell. Here is a little about TRC from another site: "TRC’s trademark strategy is to launch an unsolicited “mini-tender” offering to buy a small percentage of a company’s stock BELOW the market price. TRC then sells any shares tendered and pockets the difference. If the share price sinks below the offer price, TRC can walk away. In fact, it can legally keep investors from backing out, literally locking up their shares until it’s profitable to buy them out."

This is exactly what I was looking for and couldn't find. Thanks so much for your help! Certainly won't be selling and yes Birch, $30 would be fantastic!