Creeping Tender Offer

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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 ...
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