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

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  2. Hostile Bid

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  3. Williams Act

    A federal act passed in 1968 that defines the rules of acquisitions ...
  4. Tender Offer

    An offer to purchase some or all of shareholders' shares in a ...
  5. Hostile Takeover

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