TRC is offering to buy up to 1 million ZBH shares at $115.35 apiece – 4.4% lower that their $120.60 closing price the day before the mini-tender offer and 14.2% off the $134.50 closing price July 26.
“Zimmer Biomet does not endorse TRC’s unsolicited mini-tender offer and recommends that shareholders not tender their shares in response to the offer. The offer was commenced at a below-market offer price, is highly conditional and is not subject to important investor protections. Zimmer Biomet is not affiliated or associated in any way with TRC, its mini-tender offer or the offer documentation,” the company said. “Zimmer Biomet urges investors to obtain current market quotations for their shares, to review the conditions of TRC’s mini-tender offer, to consult with their brokers or financial advisors and to exercise caution with respect to TRC’s offer.”
Shareholders who already bit on the offer have until August 13 to withdraw via written notice, Warsaw, Ind.-based Zimmer Biomet said.
It’s not the first time TRC has tried the below-market mini-tender gambit. In February 2014 the company offered to buy back Intuitive Surgical (NSDQ:ISRG) shares at $405 a pop, which at the time was about 6.4% lower than the stock’s 12-month average closing price.
An offer to acquire 2 million Cardinal Health (NYSE:CAH) shares at about 5% below their market price followed last year. And just last month TRC was looking to purchase approximately 1 million shares of Edwards Lifesciences (NYSE:EW) stock at $162.38 each, about 3.8% off their closing price the day before.
ZBH shares were trading at $135.55 apiece today in early-afternoon activity, up 0.8%.