self-tender


Also found in: Dictionary.
Related to self-tender: partial tender offer

Self-Tender Offer

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.

self-tender

An offer by a firm to repurchase some of its own securities from stockholders, generally on a pro rata basis from those shares offered for sale. A self-tender may be preferable to purchase of the securities in the open market because a self-tender is quicker and will not disrupt public trading in the securities. Firms frequently repurchase their own stock from investors holding fewer than a set number of shares in order to eliminate the high cost of servicing small stockholders. A self-tender is similar to a buyback except that buybacks often refer to repurchases from special groups or a few large holders. Also called stock repurchase plan.
References in periodicals archive ?
Flooring solutions company Armstrong Flooring Inc (NYSE:AFI) on Monday reported the expiry and preliminary results of its modified "Dutch auction" self-tender offer to repurchase up to USD50m in cash of its common stock at 12:00, midnight New York City time, at the end of 14 June 2019.
Upon completion of the share issuance, the self-tender offer and the other transactions contemplated by the stock purchase agreement, CFL beneficially owns 51% of PDN's outstanding shares of common stock, on a fully-diluted basis.
Lie (2002) specifically tests whether tender offers are used to optimize capital structure and provides evidence that firms initiate self-tender offers when ex ante debt levels are below predicted levels.
Gray, "The self-tender repurchase anomaly," Working Paper, University of Chicago, 2005.
There are other ways a public company can be taken private, including an issuer self-tender offer and an asset sale and dissolution.
Lie and McConnell (1998) examined whether earnings improvement following fixed-price self-tender offers is greater than the Dutch auction self-tender offers, and concluded that there was evidence of earnings improvement following both types of self-tender offers.
successfully completed its second attempt at a self-tender offer to purchase shares of its common stock at a price of $9.15 per share.
(Santa, Ana, Calif.), which held 10% of Bridgeport's stock, notified the SEC of its intention to increase its percentage holdings in Bridgeport "and actively assist the company in the improvement of its performance." HTH wanted Bridgeport to "self-tender," or offer to repurchase its own stock at a price of $10.125, with funds from a line of credit that HTH would arrange.
repurchase programs (open market and privately negotiated) and self-tender transactions.
These steps included a counter-tender offer for Z's shares, a self-tender offer for X's own shares, and a judicial challenge of Z's credit agreement and Z's obligations under a consent agreement with X.
M2 EQUITYBITES-June 18, 2019-Armstrong Flooring updates the preliminary results of modified 'Dutch Auction' self-tender offer
Flooring solution company Armstrong Flooring Inc (NYSE:AFI) disclosed on Friday the launch of a modified "Dutch auction" self-tender offer to repurchase up to USD50m in cash of shares of its common stock, at a price per share within the range of USD11.70 to USD10.20, less applicable withholding taxes and without interest.