DALLAS, July 12, 2000 (PRIMEZONE) -- Income Opportunity Realty Investors, Inc. (AMEX:IOT) Wednesday announced the mini-tender offer for IOT shares being made by Mackenzie Partners at $2 per share, less distributions, is 72 percent below recent market closing prices. Income Opportunity Realty Investors closed at $7.25 on July 11, 2000. IOT recommends that its shareholders not participate in this mini-tender offer.
According to the Securities and Exchange Commission (SEC), mini-tender offers, which are for less than 5 percent of a company's stock, are not required to be registered with the SEC. The SEC recommends that investors scrutinize mini-tender offers carefully. These offers usually catch investors off guard, and investors later learn that they cannot withdraw from the offer and may end up selling their securities at below-market prices.
"Many shareholders and their brokers are unaware that the price offered in these mini-tenders is just a small fraction of the book value of these securities," said Phyllis Wolper, director of investor relations for Income Opportunity Realty Investors. "We urge every shareholder to confirm the current value of the security before agreeing to sell in these offers. In most cases, the holder would realize substantially more for their securities by selling in the open market," said Wolper.
Income Opportunity Realty Investors, Inc. is a Dallas-based real estate investment trust. IOT primarily invests in equity interest in real estate through direct ownership and partnerships. For more information, go to the company's Web site at www.incomeopp-realty.com.