- I recently wrote two articles about "tender offers" for my Inside the Income Factory members, explaining how "activists" hope ordinary shareholders will ignore them and fail to participate.
- We saw a good example of this in the recent Voya Global Advantage & Premium Opportunity Fund tender offer, where scarcely more than 25% of shareholders participated.
- The activists and other investors savvy enough to read the fine print and participate made out well as the fund paid them 64 cents more than each share's market price.
- The overwhelming majority of shareholders sat it out, missing out on a "sweetheart deal" while subsidizing their fund's cost of $1,164,752, plus all the legal fees, etc.
- Whether what the activists do is right or wrong, we can protect our investments by educating ourselves and aligning our interests with those who seem to be driving these deals.
For further details see:
Why 'Activists' Hope Ordinary Shareholders Won't Understand 'Tender Offers'