More AutoNation
I purchased another 95 share of AutoNation (AN) on Friday, but this time I bought the shares in the Special Situations Real Money Port. I used the cash I recently received from Major Automotive Companies (MJRC.PK) to purchase the shares that cost me a total of $2,056.10.
AutoNation has a tender offer out to purchase shares for $23.00 per share on a pro rated basis up to 50,000,000 shares. Odd-lot holders (less than 99 shares) will be preferentially cashed out. This is my first odd-lot tender offer, so I will be tracking it closely and writing up all my findings when the transaction is completed.
Useful Links:
What is the date of the odd-lot purchase? Do you have to elect to sell out… how would you do that through a broker?
I purchased AutoNation on March 31, 2006 in this account. The company plans to end the tender offer on April 12.
You do have to elect to sell out. You would normally do this through your broker. I filled out the broker client election form attached to the SEC filing and faxed it to my broker. I then emailed them to indicate that I wanted them to tender my shares and that I sent them the fax.
For TD Waterhouse, I did not need to fill out a form, but I had to call and I was transferred to a “Corporate Reorganization and Tenders” office. I will have to pay a $25 fee to TD Waterhouse.
So Autonation is going to send me a document like a proxy? Or do I just buy shares on Monday (tomorrow) and then call my broker and say I want to accept the odd-lot buyout? Has anyone received the money yet?
AutoNation sent out a document a few weeks ago. Since you are only buying now, it’s not likely that you’ll receive a copy of the tender offer in the mail.
It is likely that you can just call up your broker and indicate that you want to accept the tender offer.
I don’t think anyone has received money yet, but maybe someone can correct me if I’m wrong.
It sounds like you bought and tendered a couple of times. Does AutoNation allow that? Can you do that in separate accounts?
The second purchase was for my son’s Coverdell ESA and the first purchase was for my Roth IRA. The accounts are under different social security numbers.
how can we find out about other odd-lot offers? Is this standard practice with tenders.
I bought shares @ $21.55 this morning and my broker is Izone (Ameritrade). I emailed them this afternoon saying I wanted to participate in the Odd Lot Tender (I bought 99 shares). They sent back an emial just now saying they’ve submitted my request for processing. I’ll report back with the outcome.