Current Price – $44.6
Tender Price – $42.0 - $47.0
Upside – 5.5% (if priced at the upper limit)
Expiration Date – October 2nd, 2018
Thomson Reuters announced $9bn buyback, equivalent to 30% of outstanding shares. Although the offer is large, controlling shareholder Woodbridge (64% owner) will also make a proportionate tender, meaning that 2/3 of the tender amount is already reserved for Woodbridge. Tender price will be determined by the remaining minority shareholders.
Tender offer is conditioned and will be funded by proceeds from the sale of Financial & Risk business to Blackstone, that is expected to close one day before the expiration of the offer.
I have no arguments neither in favor for lower nor upper limits and would expect the tender to be priced around current market prices (or price at the time of tender expiration).
There is odd-lot priority for holders of 99 shares or less.