December 22, 2010 / 11:01 PM / 9 years ago

UPDATE 1-Raytheon urges rejection of TRC Capital offer

* Company says unsolicited offer is below market price

* Company says offer not tied to Applied Signal deal

ATLANTA, Dec 22 (Reuters) - Defense contractor Raytheon Co (RTN.N) recommended on Wednesday that shareholders reject an unsolicited “mini-tender offer” by TRC Capital Corp to buy up to 2 million common shares, or about 0.5 percent of its outstanding stock.

The defense contractor said the TRC Capital offer to buy the stock at a price of $43 a share was about a 4.4 percent discount to its closing share price of $44.96 on Dec. 20, the day before the TRC offer started.

“Raytheon does not endorse TRC Capital’s offer and recommends that Raytheon shareholders do not tender their shares,” the company said in its statement.

The company added that the TRC offer was not related to and will have no effect on its proposed acquisition of cybersecurity firm Applied Signal Technology APSG.O.

Eldorado Gold (ELD.TO), a Vancouver-based miner, also urged its shareholders to reject a TRC Capital Corp “mini-tender” offer on Wednesday [ID:nSGE6BL0BI].

Raytheon shares closed up 1.4 percent at $45.60. (Reporting by Karen Jacobs, editing by Matthew Lewis)

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