Polycom “modified dutch auction” with odd-lot provision

Posted on September 18, 2013 by admin
  • Company: Polycom Inc
  • Ticker: PLCM
  • Market Cap: 1.83B
  • Size of Action: $250mm
  • Type of Transaction: modified "dutch auction" tender
  • Current Price: $10.77
  • Exchange Price: Between $10-$11.50
  • Potential Gain (%): -7.2% to 6.8%
  • Expiration: 5:00 p.m., New York City time, on October 30, 2013
  • Tender Limit (Shares): 99
  • Max Investment ($): $1,066
  • Max Gain ($): $72
  • Sec Filing:  http://www.sec.gov/Archives/edgar/data/1010552/000119312513368434/d599778dex99a5iii.htm
  • Summary: Polycom, Inc., a Delaware corporation (“Polycom”), is offering to purchase for cash up to $250 million in value of shares of its common stock, par value $0.0005 per share (the “Shares”), at a price not greater than $11.50 nor less than $10.00 per Share, net to the seller in cash, less any applicable withholding taxes and without interest, upon the terms and subject to the conditions set forth in the Offer to Purchase, dated September 13, 2013
  • Odd Lots: first, from all holders of “odd lots” of less than 100 Shares who properly tender all of their Shares at or below the Final Purchase Price and who do not properly withdraw them before the Expiration Date.
  • Notes: Tender for $10.00 if you are going to exit the investment post-tender. Every investor will get taken out at the same purchase price and your 99 shares will not have a material effect on the outcome. $10.00 ensures you will not have to sell the stock yourself afterwards and you will avoid additional market risk if the stock price dips below $10.00.
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