A firm's
offer to
buy back its own
stock for a price well above
fair market value. A self-tender offer usually excludes a targeted number of
shareholders; it is not intended to stop
trade on its stock. Rather it is an attempt to prevent a real or suspected
hostile takeover. If a firm becomes its own majority or plurality shareholder, it either makes a hostile takeover impossible or much more
expensive for the company attempting to buy it out. See also:
Antitakeover measure.