ING "Tender" offer ?? (IRA, purchase, interest, money)

[billjr]

Please excuse my ignorance as I am not an experienced trader. I own 2000 shares of ING in an IRA account and have been asked about participating in what they call a Tender offer. They tell me that based on the number of shares I now own, I can purchase up to an additional 1714 shares at $7.06 per share. Today’s close was $9.49. Why do they do this, and while it appears to be a great deal on the surface, what is there to this that an inexperienced stock holder like myself, does not see. Is this a worth wild opportunity? Thank you for ant advice anyone can offer me.

Bill

[Omaha Rocks]

Keep in mind that ING - as well as every other bank/financial institution - is in it for THEMSELVES, not for you.

So while I am not familiar with this particular offer you are speaking of, I can guarantee you that there is a VERY self-serving reason for them to offer it to you. It's possible that it's a great deal for you, but it's undeniable that it'd be a great deal for them.

Research it closely before you jump!

[billjr]

Thank you for your response. I understand fully what you mean about who's best interest this is in, and as you stated I'm sure ING is going to end up OK. I'm continuing to research it for as much information as I can get. Thanks again.

Bill

[Traderx]

Sounds like ING needs to raise money so they're selling more stock like most banks. Thats quite a discount so they must either need the money badly or their issuing a lot of new shares causing some serious dilution.