DALLAS, July 12, 2000 (PRIMEZONE) -- Transcontinental Realty Investors, Inc. (NYSE:TCI) announced Wednesday that although the company has not been notified of any tender offers for TCI stock, it urges shareholders to reject any tender offers made by outside firms and confirm the current trading price before considering any offer for their stockholdings. Affiliates of TCI have current tender offers for as much as 80 percent below recent market closing prices; TCI's closing was above $12 per share on July 11, 2000.
According to the Securities and Exchange Commission (SEC), mini-tender offers, which are for less than 5 percent of a company's stock, are not required to be registered with the SEC. The SEC recommends that investors scrutinize mini-tender offers carefully. These offers usually catch investors off guard, and investors later learn that they cannot withdraw from the offer and may end up selling their securities at below-market prices.
"Many shareholders and their brokers are unaware that the price offered in these mini-tenders is just a small fraction of the book value of these securities," said Phyllis Wolper, director of investor relations for Transcontinental Realty Investors. "We urge every shareholder to confirm the current value of the security before agreeing to sell in these offers. In most cases, the holder would realize substantially more for their securities by selling in the open market," said Wolper.
Transcontinental Realty Investors, Inc., a Dallas-based real estate investment trust, invests in real estate through direct equity ownership and partnerships nationwide. The company also invests in mortgage loans, including first, wraparound and junior mortgages. For more information, visit the company's Web site at www.transconrealty-invest.com .