One of the toughest decisions for an investor is knowing when to sell a stock. And for shareholders of Sempra Energy, that's a critical question right now because the company has made them an offer that could be very difficult to refuse.
Shareholders can tender all or a portion of their shares at a price within that range.
Based on the number of shares tendered and the prices specified by shareholders, the company will determine the single, per-share price within the range and all accepted bids will get that price. Sempra hopes that enough shareholders take the bait and offer to sell back up to 36 million shares, which represents 15 percent of the company's outstanding shares. Sempra's offer expires at 2 p.m. Feb. 25, and shareholders whose shares are purchased will be paid in cash after that deadline. Michael Heim, a utility analyst with A.G. Edwards, says the Dutch auction is a good move for the company. And it gives growth investors who have been waiting to buy the stock but held off fearing a dividend cut a chance to make their move.