tender offer

n. An offer to purchase shares of a company's stock at a price above the current market price in an attempt to take control of the company by accumulating sufficient shares.

Thesaurus

Noun

tender offer - an offer to buy shares in a corporation (usually above the market price) for cash or securities or bothtakeover bid - an offer to buy shares in order to take over the companyoffering, offer - something offered (as a proposal or bid); "noteworthy new offerings for investors included several index funds"

Tender Offer

A proposal to buy shares of stock from the stockholders of a corporation, made by a group or company that desires to obtain control of the corporation.

A tender offer to purchase may be for cash or some type of corporate security of the acquiring company—for example, stock, warrants, or debentures. Such an offer is sometimes subject to either a minimum or maximum that the offeror will accept and is communicated to the stockholders through newspaper advertisements or a general mailing to the complete list of stockholders. Tender offers are subject to regulations by state and federal Securities laws, such as the Williams Act (15 U.S.C.A. § 78a et seq.).

Cross-references

Mergers and Acquisitions; Stock Warrant.

Tender offer

General offer made publicly and directly to a firm's shareholders to buy their stock at a price well above the current value market price.

Tender Offer

An offer to buy some or most of the stock in a publicly-traded company directly from shareholders for a price well above fair market value. A tender offer may be made by the company's management in a bid to prevent a hostile takeover. Alternatively, it may be a made by an outside company as part of a hostile takeover. See also: Self-Tender Offer.

tender offer

An offer made directly to stockholders to purchase or trade for their securities. A tender offer often contains restrictions such as the minimum number of shares required to be tendered for the offer to be effective or the maximum number of tendered shares that will be accepted. A tender offer may be made by a firm to its own shareholders to reduce the number of outstanding shares, or it may be made by an outsider wishing to obtain control of the firm. Compare hostile tender offer. See also creeping tender offer, exclusionary tender offer, mini-tender offer, partial tender offer, self-tender, two-tier tender offer, Williams Act.

Tender offer.

When a corporation or other investor offers to buy a large portion of outstanding shares of another company, called the target company, at a price higher than the market price, it is called a tender offer.

The tender is usually part of a bid to take over the target company. Current stockholders, individually or as a group, can accept or reject the offer.

If the tender offer is successful and the corporation accumulates 5% or more of another company, it has to report its holdings to the Securities and Exchange Commission (SEC), the target company, and the exchange or market on which the target company's shares are traded.

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Tender Offer

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Cross-references

Tender offer

Tender offer

Tender Offer

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Tender offer.

tender offer

Words related to tender offer

noun an offer to buy shares in a corporation (usually above the market price) for cash or securities or both

Related Words