DEFINITION of 'Tender'

To invite bids for a project, or to accept a formal offer such as a takeover bid. Tender usually refers to the process whereby governments and financial institutions invite bids for large projects that must be submitted within a finite deadline. The term also refers to the process whereby shareholders submit their shares or securities to a takeover offer.


For projects or procurement, most institutions have a well-defined tender process, as well as processes to govern the opening, evaluation and final selection of the vendors. This ensures that the selection process is fair and transparent.

In the case of a takeover, most offers stipulate that a certain percentage of shares must be tendered by the deadline in order for the deal to proceed. Disgruntled shareholders who believe the takeover offer is too low often refuse to tender their shares; they may also try to marshal support from other shareholders against the takeover in a bid, to block the deal.

  1. Acquisition

    A corporate action in which a company buys most, if not all, ...
  2. Treasury Direct

    The online market where investors can purchase federal government ...
  3. Tender Offer

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

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

    An auction process through which large institutional investors ...
  6. Hedged Tender

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