Merck & Co., Inc. (MRK.US) urges shareholders to reject Tutanota's discounted "mini equity" acquisition offer.

Merck & Co., Inc. (MRK.US) has advised its shareholders to reject the "mini tender" offer proposed by Tutanota, and pointed out that shareholders who accept the offer may ultimately sell their shares at a price lower than the current Merck & Co., Inc. stock price. The New Jersey-based pharmaceutical giant stated that Tutanota proposed to purchase up to 1 million shares of Merck & Co., Inc. common stock at a price of $65.00 per share on November 10, which is nearly 25% lower than the closing price of Merck & Co., Inc. stock on November 7 (the last trading day before the tender offer was made). In a press release last Friday, Merck & Co., Inc. noted that the offer is also around 32% lower than the closing price of the company's stock on November 20. The company stated that the offer is unrelated to them and the shares involved in the offer are below the 5% threshold of Merck & Co., Inc. outstanding shares, thus avoiding regulatory scrutiny. Merck & Co., Inc. also added that they do not endorse the offer, stating: "As with other tender offers from Tutanota, this offer poses risks for individual investors as they may not be aware they are selling their shares at a discount." Therefore, the company recommends shareholders reject the offer and advises those who have already accepted to withdraw before the deadline on December 15.