Williams Act

Williams Act

A federal act, passed in 1968, that defines the rules in regards to acquisitions and tender offers.

Notes:

In the 1960s, a large number of takeovers occurred unannounced. This created difficulties for managers and stockholders who were forced to make crucial decisions with very little preparation.

The Williams Act was created in order to protect investors from these occurrences. The bidders must include all details of their tender offer in their filing to the SEC and the target company. Their file must include the terms, cash source, their plans for the company after takeover, etc. There are also time constraints that stipulate the minimum period of time the offer may be open and the number of days after the offering in which shareholders have the right to change their minds.

See also: Acquisition, Saturday Night Special, Securities and Exchange Commission - SEC, Takeover, Tender, Tender Offer

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Williams Act

Federal legislation enacted in 1968 (and now constituting Rules 13d and 14d of the Security Exchange Act of 1934) that imposes requirements with respect to public tender offers.

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Williams Act

A 1968 addition to the Securities Exchange Act of 1934 that requires investors who own or tender more than 5% of a firm's stock to furnish certain information to the SEC. The act also established a minimum period during which a tender offer must be held open. Required information includes the reason for the acquisition, the number of shares owned, and the source of the funds used for the purchase.