A Dutch Auction, unlike a normal course issuer bid, purchases a large block of shares all at once. Yes, usually when a company is repurchasing shares aggressively through a Dutch auction, that means management believes shares are undervalued and wants to take advantage of that discount for the staying shareholders. In addition, if investors like what they own, after the auction they now own a bigger piece of the company than they did before. Investors who choose to sell in the tender may do so for different reasons: Maybe investors need cash for personal reasons or other reinvestment opportunities, etc. and the tender would be an opportunity for them to get out at a better price than average with healthy liquidity. A large shareholder may see better liquidity in tendering to an auction than selling into the market. There is also no commission on tendering. The tender is a decent one, around $1.5B, or cancelling around 3.4% of the shares outstanding within a short period of time. IMO is a well-managed company that is shareholder-friendly. We think this policy would benefit long-term shareholders who stay, and we would not tender the shares here.
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