Creeping Tender Offer

AAA

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.

INVESTOPEDIA EXPLAINS '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. Acquisition

    A corporate action in which a company buys most, if not all, ...
  2. Hostile Bid

    A specific type of takeover bid that is presented directly to ...
  3. Williams Act

    A federal act passed in 1968 that defines the rules of acquisitions ...
  4. Hostile Takeover

    The acquisition of one company (called the target company) by ...
  5. Tender Offer

    An offer to purchase some or all of shareholders' shares in a ...
  6. Asset Valuation Review (AVR)

    A process that establishes an estimate of the value of a failed ...
Related Articles
  1. What is the Pac-Man defense?
    Investing

    What is the Pac-Man defense?

  2. The Getty Oil Takeover Fiasco
    Home & Auto

    The Getty Oil Takeover Fiasco

  3. Trademarks Of A Takeover Target
    Bonds & Fixed Income

    Trademarks Of A Takeover Target

  4. Pinpoint Takeovers First
    Options & Futures

    Pinpoint Takeovers First

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center