InsideArbitrage June 2026 Mid-Month Update – Undersubscribed Tender Offers

This mid-month update is a little late as I was on a special-situations focused panel at the Planet MicroCap conference in Las Vegas, where I talked briefly about undersubscribed tender offers and a company that saw its stock price rise following the completion of its tender offer. I figured I would elaborate on that idea in this update and how non-merger related tender offers could present opportunities.

After a bridge game last week, I was talking to a couple of friends about how a company that was trying to buyback its stock through a tender offer ended up being significantly undersubscribed. They were trying to buy $25 million worth of stock in the tender offer but only managed to buy a little over $7 million. Depending on how you looked at this outcome, it could be bullish for the stock, but more on that later.

One of my friends was wondering why I viewed this as a bullish sign and the other one remarked that it reminded him of something he read in a book that was published more than a century ago, Reminiscences of a Stock Operator by Edwin Lefèvre about the famous speculator Jesse Livermore (the “boy plunger”).

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