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 ?
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.
AudioCodes (NASDAQ: AUDC) (TASE: AUDC) has reported final results of its self-tender offer to purchase up to 3,000,000 of its ordinary shares at nominal (par) value NIS 0.
AudioCodes (NASDAQ: AUDC) (TASE: AUDC) has commenced a self-tender offer to purchase up to 3,000,000 ordinary shares of AudioCodes at a price of USD4.
Intrawest Resorts Holdings Inc (NYSE:SNOW) disclosed on Thursday the final results of its modified 'Dutch auction' self-tender offer, which expired at 17:00 New York City time on 10 February 2016.
M2 EQUITYBITES-May 15, 2015-Winmark Corporation reports results of self-tender offer; Closes on USD85.
M2 EQUITYBITES-April 16, 2015-Winmark announces self-tender offer to purchase up to 875,000 shares at USD84.