Tender offer premium

Tender offer premium

The premium offered above the current market price in a tender offer.

Tender Offer Premium

A tender offer made above the fair market value of the offering.
References in periodicals archive ?
As a result of the debt extinguishment and tender offer premium, SXCP expects to recognize between $15 million to $18 million of additional interest and financing expense in second quarter 2014.
We follow Vermaelen (1981) and calculate the tender offer premium as the difference between the tender offer price and the closing stock price five days prior to the initial announcement of the tender offer standardized by the closing stock price five days prior to the offer for fixed-price offers.
Similar to Vermaelen (1981), we find CARs positively relate to the tender offer premium (the coefficient on PREMIUM is 0.
We also find that the information conveyed by the offer, measured by the post-expiration appreciation of the firm's stock, is contained in the tender offer premium, and that offer premiums are inversely related to firm size and to pre-offer stock performance.
t], as an independent variable to determine if the anticipated re-valuation of the shares is built into the tender offer premium.