Blitzkrieg Tender Offer

DEFINITION of 'Blitzkrieg Tender Offer'

A takeover offer that is intended to be so attractive that very few objections will arise and the takeover will occur swiftly. In German, "blitz" means lightning and "krieg" means war. Thus, a blitzkrieg (lightning war) refers to a surprise offensive that is both powerful and swift and was used to describe World War II bombing raids.

BREAKING DOWN 'Blitzkrieg Tender Offer'

To curtail surprise takeovers such as Blitzkrieg Tender Offers and Saturday Night Specials, the Williams Act of 1968 was introduced, placing severe restrictions on tender offers and required disclosure of direct or indirect ownership of 5% or more of any class of equity. 

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RELATED FAQS
  1. How is a tender offer used by an individual, group or company seeking to purchase ...

    Learn how tender offers are used in takeover attempts, and understand the difference between a hostile takeover and a friendly ... Read Answer >>
  2. What usually happens to the price of a stock when a tender offer for shares of the ...

    Learn what happens to the price of a stock when a tender offer is made public. Some of the most contentious takeovers have ... Read Answer >>
  3. Under what circumstances might a company decide to do a hostile takeover?

    Learn about why companies use a hostile takeover to gain control of another company, and understand the different methods ... Read Answer >>
  4. Why would it be in the interest of shareholders to accept a tender offer?

    Learn when it is in the best interests of shareholders to accept a tender offer. A tender offer is a bid to buy a large portion ... Read Answer >>
  5. What happens to the shares of stock purchased in a tender offer?

    Learn what a tender offer is, whether it is a good idea to accept a tender offer and what happens to the shares of stock ... Read Answer >>
  6. If a company offers a buyback of its shares, how do I decide whether to accept the ...

    Learn why it may often be in the best interest of a shareholder to accept a tender offer made at a premium to the market ... Read Answer >>
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