Houston Natural Resources Corp (HNRC)

[packerfanbud]

I didn't catch that. I believe it should have been $20 also, but I've seen various explanations out there about what the final price should be. All are in agreement that if they take in multiple bid levels everyone gets the same price and they will get the higher and not the lower pps.

This definition states that if not enough shares are tendered then it would be the max price. I wonder if the author from the above was thinking about that scenario? I don't think the max price is going to matter to WNTR because the phrase "up to 1 Billion" probably excludes them from ever having to pay that out if not enough shares were tendered.

The introduction of the Dutch auction share repurchase in 1981 allows an alternative form of tender offer. A Dutch auction offer specifies a price range within which the shares will ultimately be purchased. Shareholders are invited to tender their stock, if they desire, at any price within the stated range. The firm then compiles these responses, creating a demand curve for the stock.[8] The purchase price is the lowest price that allows the firm to buy the number of shares sought in the offer, and the firm pays that price to all investors who tendered at or below that price. If the number of shares tendered exceeds the number sought, then the company purchases less than all shares tendered at or below the purchase price on a pro rata basis to all who tendered at or below the purchase price. If too few shares are tendered, then the firm either cancels the offer (provided it had been made conditional on a minimum acceptance), or it buys back all tendered shares at the maximum price. http://en.wikipedia.org/wiki/Share_repurchase