Cooper issues cautionary statement to shareholders

FINDLAY, Ohio (April 18)—Cooper Tire & Rubber Co. warned its shareholders not to accept any offers they may receive from TRC Capital Corp. The Canadian company is seeking to buy 3.4 percent, or 2.5 million shares, of the company's common stock for $10.90 each for investment purposes, said Roger Hendricksen, Cooper director of investor relations. Cooper's stock was trading midday April 18 at $12.12. Richard Teeple, Cooper vice president and general counsel, said the offers are the type that the U.S. Securities and Exchange Commission has said is increasingly used to catch investors off guard. Investors assume the price offered is a premium to the market price, when in fact, the purpose of the offer is to acquire shares at bargain prices, without regard to shareholder interests, Teeple said in the statement. Cooper said it has asked the SEC to review TRC's offer and determine if it is in violation of federal securities laws.