DEFINITION of 'Creeping Tender Offer'

A takeover strategy involving the gradual acquisition of the target company's shares. A creeping tender offer is conducted through the open financial markets rather than as a direct bid to the shareholders as is common in regular tender offer procedures.

BREAKING DOWN 'Creeping Tender Offer'

Since an acquirer purchases shares through the open market, a premium is not offered to the shareholder. Creeping tender offers are primarily used to try to circumvent provisions of the Williams Act and obtain shares at a non-inflated price.

RELATED TERMS
  1. Tender Offer

    An offer to purchase some or all of shareholders' shares in a ...
  2. Hedged Tender

    A strategy in a tender offer where an investor short sells a ...
  3. Proration

    A situation during a corporate action in which the available ...
  4. Tender

    To invite bids for a project, or to accept a formal offer such ...
  5. Saturday Night Special

    An obsolete takeover strategy where one company attempted a takeover ...
  6. Schedule TO-C

    This schedule, filed with the SEC, is simply any written communication ...
Related Articles
  1. Small Business

    Explaining Tender Offers

    A tender offer is a broad public offer made by a person or company to purchase all or a portion of the shares of a publicly traded company.
  2. Investing

    How Does a Tender Work?

    Tender usually refers to the process in which governments invite suppliers to bid for the right to work on large projects.
  3. Managing Wealth

    3 Benefits of a Successful Tender Offer: Cliffs Natural (CLF)

    Learn about the potential benefits that the debt tender offer by Cliffs Natural Resources had for the company's balance sheet and income statement.
  4. Investing

    Should You Reject the Costco Mini-Tender Offer?

    Costco (NASDAQ: COST) shareholders might have gotten a surprise when they found out someone was offering to buy their stock. The warehouse club announced that TRC Capital was offering to buy ...
  5. Investing

    Pinpoint Takeovers First

    Use these seven steps to discover a takeover before the rest of the market catches on.
  6. Small Business

    What is a Takeover?

    A takeover happens when one company makes a bid to acquire a target company.
  7. Investing

    Warding Off Hostile Takeovers

    The purpose of this article is to provide a general overview of hostile corporate takeovers, while highlighting a general course of action against such activity. This article provides basic information ...
  8. Financial Advisor

    The Basics of The Series 79 Exam

    Passing the Series 79 exam is usually necessary for anyone who wants to work in investment banking.
  9. Investing

    Corporate Takeover Defense: A Shareholder's Perspective

    Find out the strategies corporations use to protect themselves from unwanted acquisitions.
  10. Investing

    Mergers And Acquisitions: Understanding Takeovers

    In the dramatic world of M&As, battleground terms meld with bizarre metaphors to form the language of the game.
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 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 >>
  3. 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 >>
  4. 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 >>
  5. 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 >>
Hot Definitions
  1. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  2. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  3. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  4. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  5. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
  6. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
Trading Center