This letter offering to buy your shares? Think twice.

Another company, Tutanota, has launched a series of mini-offers since last summer, soliciting shareholders from companies including PayPal, Adobe, Disney, Microsoft, Alibaba and Bank of America.

His offer for PayPal was $125 per share – as long as the stock traded above that price on the last day of the offer period. The offer also stated that Tutanota planned to extend the offer several times, “until the market price exceeds the offer price”, and that the offer was conditional on “Tutanota obtaining all the necessary funding” to finance it.

PayPal, whose stock closed at $102 on Thursday, advised shareholders on Feb. 25 statement to reject the offer. “PayPal does not endorse Tutanota’s unsolicited mini-tender offering and is in no way affiliated or associated with Tutanota, its mini-tender offering, or its offering documents. of mini-tenders,” he said.

Tutanota, who describes himself as a “private investment firm specializing in investing in publicly traded securities that are expected to appreciate in value over a 12-month period,” could not be reached for comment. No one responded to an email address provided in the offer, or messages left on a phone number that a record answered.

(A spokeswoman for Tutao, a German company that provides a secure email service called Tutanota, said in an email that it had “no affiliation with Tutanota LLC.”)

Companies can find themselves in an awkward position when shareholders receive mini takeover bids. According to the SEC, companies must notify their shareholders of takeover bids as soon as they become aware of them. But since bidders of mini-bids are not required to inform the target, companies may not be informed.

Here are some questions and answers about mini-tendering offers:

Bidders generally do not label their bids as mini-tenders, perhaps due to their dubious reputation. The SEC advises that you read the offering document carefully and check with the offeror or your broker or financial advisor, if you have one. If the bidder is seeking less than 5% of the company’s stock, the SEC says, “You’re dealing with a mini-takeover bid and you should proceed with caution.”

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