Tender Offer

Filed Under »
Dictionary Says

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.
Investopedia Says

Investopedia explains '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.

Related Definitions

  • Acting In Concert

    A slang term for when parties undertake identical investment actions to achieve the same goal. Acting in concert requires the cooperation of people or corporations to make the same ...
    Read More »
  • Hedged Tender

    A strategy in a tender offer where an investor short sells a portion of the shares he or she owns. This strategy is used to protect against the risk of loss in the event that the tender ...
    Read More »
  • Hostile Takeover

    The acquisition of one company (called the target company) by another (called the acquirer) that is accomplished not by coming to an agreement with the target company's management, but ...
    Read More »
    • Securities And Exchange Commission - SEC

      A government commission created by Congress to regulate the securities markets and protect investors. In addition to regulation and protection, it also monitors the corporate takeovers ...
      Read More »
    • Takeover

      A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the acquiring company will make an offer for the outstanding shares.
      Read More »
    • Target Firm

      A company which is the subject of a merger or acquisition attempt. A takeover attempt can take on many different flavors, depending on the attitude of the target firm toward the ...
      Read More »
    • Tender

      1. To accept a formal offer, such as a takeover bid or tender offer. 2. A means of settlement in a financial transaction. 3. A bid to buy treasury bills. 4. A notice from a ...
      Read More »
    • Bear Hug

      An offer made by one company to buy the shares of another for a much higher per-share price than what that company is worth. A bear hug offer is usually made when there is doubt that the ...
      Read More »
    • Short Tender

      An investing practice that involves using borrowed stock to respond to an offer made during an attempted acquisition of some or all of a shareholders' shares. The purchase price is ...
      Read More »
    • Mini-Tender

      A type of third-party offer made to a company's shareholders as an attempt to purchase the underlying shares. Unlike conventional tenders, mini-tenders usually involve less than 5% of a ...
      Read More »
Partner Links