RIVERWOODS, Ill. – Discover Financial Services, the electronic funds network spun off from Morgan Stanley two months ago, is recommending stockholders against participating in a ‘mini-tender offer’ launched for its shares, warning the offering price is too low. TRC Capital has offered $22 a share, below Tuesday’s $23.10 price, and well below the $28 the shares went public at on June 14. Mini-tender offers allow speculators such as TRC to underbid, a type of short-selling, for a company’s shares, without having to make proper disclosures to the public. Discover Financial is the parent of PULSE EFT, the cards network for 4,100 credit unions and banks.
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