tender offer
Noun: 1. A public proposal to purchase a quantity of shares of a corporation's stock: A "tender offer" is a formal, public solicitation made by an individual, company, or group (the bidder) to all shareholders of a target corporation, offering to buy a specified number of their shares. This offer is typically made at a stated price per share, which is often at a premium (above the current market price), and for a limited period. The consideration offered can be cash, securities (like shares of another company), or a combination of both.
A tender offer is a common method used in corporate takeovers and acquisitions. It is made directly to shareholders, often bypassing the target company's management. The goal is to acquire enough shares to gain a controlling interest in the company. - The bidder must file detailed disclosures with regulatory authorities. - Shareholders individually decide whether to "tender" (offer to sell) their shares at the proposed terms. - The offer may be conditional on a minimum number of shares being tendered.
- Noun:
- The rival company launched a hostile tender offer to acquire a majority stake.
- Shareholders must decide whether to accept the cash tender offer before the expiration date.
- The board of directors advised against the tender offer, claiming it undervalued the company.
- "to make a tender offer": to formally initiate and announce the proposal to purchase shares.
- The activist investor decided to make a tender offer for 20% of the company's outstanding shares.
- "to reject a tender offer": for shareholders or the company's board to refuse or advise against accepting the offer.
- The board unanimously voted to reject the tender offer as not in the shareholders' best interests.
- "conditional tender offer": an offer that will only be executed if certain conditions are met, such as obtaining a minimum number of shares.
- The merger agreement included a conditional tender offer for the outstanding stock.
- Tender (verb): To formally offer or present something for acceptance. In finance, it specifically means to offer one's securities for sale in response to a tender offer.
- Shareholders can tender their shares through their brokerage firm.
- Tendering (noun): The act of offering shares for sale in response to a tender offer.
- The tendering process is managed by a depositary bank.
- Exchange Offer: A type of tender offer where the bidder offers securities (e.g., bonds or shares of a different company) as payment instead of cash.
- Takeover bid: An offer made to gain control of a company, which can include a tender offer.
- Buyout offer: A general offer to purchase a controlling interest in a company.
- Tender offer statement: The formal document (such as a Schedule TO filed with the U.S. SEC) that discloses all material details of the tender offer.
- The tender offer statement outlined the premium being offered over the market price.
- Tender offer period: The specific timeframe during which shareholders can submit their shares to the offer.
- The tender offer period expires at midnight on the 30th.
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an offer to buy shares in a corporation (usually above the market price) for cash or securities or both
