Berwyn-based Ametek is urging its shareholders not to accept an offer from TRC Capital, an investment firm known for its controversial tactics, writes Michelle Caffrey for the Philadelphia Business Journal.

The electronics manufacturing company recently warned its shareholders about the Canadian-based firm’s mini-tender offer to buy Ametek’s shares at $79.50. That is close to a five percent discount from its trading price of $83.72.

TRC Capital is infamous for its mini-tender offers, described by the Securities and Exchange Commission as a method used to “catch shareholders off guard.” Shareholders can then jump to the conclusion that the price offered is at a premium. However, to circumvent SEC rules, firms such as TRC issue much smaller offerings to buy less than five percent of the outstanding shares.

Ametek notified its shareholders that it does not endorse TRC’s offer. It also recommended shareholders not tender any shares, and in case they already have, to provide TRC with a written notice to withdraw the offer by May 1.

Read more about Ametek in the Philadelphia Business Journal here.

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