exchange offer

Also found in: Wikipedia.

Exchange offer

An offer by a firm to give one security, such as a bond or preferred stock, in exchange for another security, such as shares of common stock.

Exchange Offer

An offer by a company to trade stocks or bonds for other stocks or bonds. For example, a firm may redeem bonds with other bonds of equivalent value. This often occurs when the firm has poor cash flow. Likewise, a company may redeem stocks in itself for other stocks, either in the same or another firm. An exchange offer of stocks is common following a merger or acquisition.

exchange offer

An offer by a firm to exchange its own securities for those of another firm or for a different series of the same firm's securities. For example, a firm may offer a new bond issue in exchange for an older series currently outstanding. Depending on the type of securities included in the offer, the security holder may be taxed for the exchange.
Case Study In April 2001 AT&T offered its stockholders shares in AT&T Wireless Group in exchange for shares of AT&T Corp. The exchange offer was intended to split off AT&T Wireless from the parent company as part of the firm's planned restructuring into three separate and independent corporations. At the time of the offer, AT&T owned approximately 70% of AT&T Wireless that traded on the New York Stock Exchange as a tracking stock. Japan's Nippon Telegraph & Telephone had earlier paid nearly $10 billion for 16% of AT&T Wireless. According to terms of the exchange offer, AT&T would issue 1.176 shares of AT&T Wireless Group for each share of AT&T stock. The exchange ratio represented a 6.5% premium compared to AT&T's common stock, which was then trading for $22 per share. AT&T announced it would accept up to 427.7 million shares of its common stock in the exchange, which would be conducted on a pro rata basis in the event AT&T stockholders tendered more than 427.7 million shares.
References in periodicals archive ?
New York City time, on Thursday, March 16, 2006, unless further extended, the expiration of its exchange offer (the "Exchange Offer") to exchange up to $125.
Allergan has filed a Registration Statement on Form S-4 and a Tender Offer Statement on Schedule TO in connection with the exchange offer.
800-279-4514) has been appointed the information agent for the exchange offer.
New York City time, on Friday, March 17, 2006, unless further extended, the expiration of its exchange offer (the "Exchange Offer") to exchange up to $125.
NYSE:ETP) announced today that it has commenced a registered exchange offer to exchange newly issued 5.
are serving as the dealer managers for the exchange offer and placement agents for the cash offer.
GFSI") today announced that, in connection with the previously announced exchange offer and consent solicitation pursuant to which GFSI is offering to exchange a new issuance of $134.
82 per common share of New Valley and a 45 percent premium to the closing price of New Valley's common shares on September 26, 2005, the last trading day prior to the initial announcement of the exchange offer.
Second Street, 19th Floor Auditorium, Miami, Florida to approve the issuance of shares of Vector Group's common stock pursuant to Vector Group's proposed premium exchange offer for all of the outstanding common shares of New Valley Corporation (NASDAQ: NVAL) not currently owned by Vector Group.
NYSE: BN) announced today that, in connection with the exchange offer for all outstanding Borden shares by KKR's affiliate, Borden Acquisition Corp.
Trans-Lux Corporation (AMEX:TLX), a leading supplier of programmable electronic information displays and owner/operator of cinemas, announced it commenced its Exchange Offer today, pursuant to which Trans-Lux Corporation (the "Company") is offering to exchange (the "Exchange Offer") 133 shares of its Common Stock for each $1,000 principal amount of its 8i% Limited Convertible Senior Subordinated Notes due 2012 (the "Notes").
July 8 /PRNewswire/ -- Glendale Federal Bank today announced that it has commenced an exchange offer for the 7.