Tender Offer


DEFINITION of 'Tender Offer'

An offer to purchase some or all of shareholders' shares in a corporation. The price offered is usually at a premium to the market price.


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BREAKING DOWN 'Tender Offer'

Tender offers may be friendly or unfriendly. Securities and Exchange Commission laws require any corporation or individual acquiring 5% of a company to disclose information to the SEC, the target company and the exchange.

  1. Takeover

    A corporate action where an acquiring company makes a bid for ...
  2. Bear Hug

    An offer made by one company to buy the shares of another for ...
  3. Acting In Concert

    A slang term for when parties undertake identical investment ...
  4. Hostile Takeover

    The acquisition of one company (called the target company) by ...
  5. Target Firm

    A company which is the subject of a merger or acquisition attempt. ...
  6. Tender

    To invite bids for a project, or to accept a formal offer such ...
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  1. What happens to the shares of stock purchased in a tender offer?

    The shares of stock purchased in a tender offer become the property of the purchaser. From that point forward, the purchaser, ... Read Full Answer >>
  2. How is a tender offer used by an individual, group or company seeking to purchase ...

    A tender offer is made directly to shareholders in a publicly traded company to gain enough shares to force a sale of the ... Read Full Answer >>
  3. Why would it be in the interest of shareholders to accept a tender offer?

    It would be in the best interests of shareholders to accept a tender offer if it is well above the current market price – ... Read Full Answer >>
  4. What usually happens to the price of a stock when a tender offer for shares of the ...

    Usually, the price of a stock rises when a tender offer for shares of the company is made public. A tender offer is an offer ... Read Full Answer >>
  5. Under what circumstances might a company decide to do a hostile takeover?

    A company may decide to attempt a hostile takeover if the target company's board of directors is not open to negotiations ... Read Full Answer >>
  6. Where can I find current data on stock buyback offers?

    Many financial websites, such as Bloomberg and Marketwatch, provide information about past and current stock buyback offers. ... Read Full Answer >>
  7. What is the difference between a hostile takeover and a friendly takeover?

    A hostile takeover occurs when one corporation, the acquiring corporation, attempts to take over another corporation, the ... Read Full Answer >>
  8. Why does executive compensation facilitate when a company buys back its stock?

    Stock buybacks facilitate executive compensations because a large part of executive compensation is usually stock-based. In ... Read Full Answer >>
  9. What was the worst investment Warren Buffett made in his career?

    According to Warren Buffett, the worst investment of his career was his purchase of Berkshire Hathaway. Buffett first got ... Read Full Answer >>
  10. What is the significance of a Schedule 13D?

    A Schedule 13D is significant because it provides investors with useful information about majority ownership in the company. ... Read Full Answer >>
  11. When is a takeover bid legally canceled?

    When a firm makes an official bid to take over a target company, a legal offer is created. The firm making the offer becomes ... Read Full Answer >>
  12. What does the term "stock-for-stock" mean?

    The term "stock-for-stock" is popularly used in two different contexts, and it regularly makes business news headlines in ... Read Full Answer >>
  13. If I reject the tender offer for acquisition of the stock that I own in a company ...

    Since the passing of the Sarbanes-Oxley Act, a significant number of public companies have chosen to go private. The reasons ... Read Full Answer >>

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