tender offer

Tender Offer

An offer to purchase some or all of shareholders' shares in a corporation. The price offered is usually at a premium to the market price.

Notes:

Tender offers may be friendly or unfriendly. SEC laws require any corporation or individual acquiring 5% of a company to disclose information to the SEC, the target company, and the exchange.

See also: Acquisition, Hedged Tender, Hostile Takeover, SEC, Takeover, Target Firm, Tender

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Tender offer

General offer made publicly and directly to a firm's shareholders to buy their stock at a price well above the current value market price.

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tender offer

An offer made directly to stockholders to purchase or trade for their securities. A tender offer often contains restrictions such as the minimum number of shares required to be tendered for the offer to be effective or the maximum number of tendered shares that will be accepted. A tender offer may be made by a firm to its own shareholders to reduce the number of outstanding shares, or it may be made by an outsider wishing to obtain control of the firm. Compare hostile tender offer. See also creeping tender offer, exclusionary tender offer, mini-tender offer, partial tender offer, self-tender, two-tier tender offer, Williams Act.