Business
Tower Properties Company Required Response to Shareholders Regarding Institutional Bond Investors II, LLC Tender Offer
Tower Properties Company Required Response to Shareholders Regarding Institutional Bond Investors II, LLC Tender Offer.
About this update from Tower Properties Company
[{"type":"text","content":"May 20, 2008\n\nDear Shareholder:\n\nOn May 13, 2008, we received a letter from Institutional Bond Investors II, LLC (IBI) dated May 7, 2008, in which IBI offers to purchase (the \"IBI Tender Offer\") 3,000 shares of common stock (the \"Shares\") of Tower Properties Company (\"we\", \"us\" or the \"Company\"). The IBI Tender Offer states the price offered is $307 per Share, in cash, which amount will be reduced by any distributions declared or paid by the Company after November 1, 2007 as well as by any transfer fees charged by the transfer agent. \n\nRule 14e-2 under the Securities Exchange Act of 1934, as amended (the \"Exchange Act\"), requires us to take one of three permissible types of positions with respect to the IBI Tender Offer within ten business days of the date it commenced (which we have assumed is the date it was dated). We note that the last trade we are aware of for the Company's common stock was $297 per Share on January 25, 2008. The trading price range that we are aware of for the preceding 52 weeks ended January 25, 2008 was from $297 to $360 per Share. However, the Company's common stock is not actively traded and this recent trade may not be representative of its intrinsic value. In addition, our Board of Directors has not received a recent valuation of the Company's common stock, or obtained a recent appraisal of its assets or liabilities, and is therefore not able at this time to determine whether the IBI Tender Offer of $307 per Share is higher or lower than the intrinsic value of the Shares. \n\nAs a consequence, we are not now expressing an opinion, nor making a recommendation, and are remaining neutral with respect to the IBI Tender Offer, which is one of the types of positions we are permitted to take under Rule 14e-2. \n\nEach shareholder of the Company should therefore make his, her or its own independent investment decision with respect to accepting or rejecting the IBI Tender Offer. You are encouraged to seek the advice of your own financial, tax and other advisors before making your investment decision. \n\nIn considering your investment decision, you should be aware that our Board of Directors is actively considering the possibility of authorizing the Company to initiate a transaction in which the number of shareholders, both beneficial and of record, would be reduced to 100 or less so that th...