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Short Tender

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Short tender
Practice prohibited by SEC that involves the use of borrowed stock to respond to a tender offer.

Short Tender
The use of borrowed shares to receive proceeds from a tender offer. That is, if one borrows shares during a tender offer, and then sells them to the party making the offer, one has engaged in a short tender. The SEC prohibits short tenders under Rule 10b-4. See also: Short sale.

short tender
A technique for capitalizing on a tender offer by using borrowed shares acquired through a short sale. A short tender is prohibited by SEC Rule 10b-4.


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Federal Government has already announced a short tender and it was only today that technical and financial were submitted for 12 thermal.
Our results suggest that liquidity is significantly enhanced during the tender period, but that the improvement in liquidity is transitory and limited to the relatively short tender period.
 
 
 
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