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Two-Tier Tender Offer

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Two-Tier Tender Offer
A tender offer in which a buyer offers to buy enough shares to gain control of the company at a certain price, then offers to buy the remaining shares at a lower price. For example, a buyer may purchase 50% + 1 of a company at $20 per share and then offer to buy the rest of the company at $12 per share. See also: Blended price.

two-tier tender offer
An offer to purchase a sufficient number of stockholders' shares so as to gain effective control of a firm at a certain price per share, followed by a lower offer at a later date for the remaining shares. For example, an investor may offer $50 per share for up to 51% of a firm's outstanding stock and then, having gained control, offer $40 for each of the remaining shares. Compare any-and-all bid. See also appraisal right, back-end value, blended price, fair price amendment.


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Specifically fair price amendments impact the price received by shareholders in the event of a takeover, thus reducing the "prisoner's dilemma" in the case of a two-tier tender offer.
Conditional two-tier tender offers are coercive; once the bid is announced, target shareholders will tender if the first-tier price, B, is greater than the second-tier price, [V.
Rather, the Rights Plan was adopted to protect TVI stockholders against attempts to acquire control of the Company by means of open market accumulations of shares, two-tier tender offers, offers at less than a full and fair price or other prevalent takeover tactics which the Board believes are not in the best interests of TVI stockholders," Rick Priddy, President and Chief Executive Officer stated.
 
 
 
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