Williams Act

What Does Williams Act Mean?
A federal act, passed in 1968, that defines the rules in regards to acquisitions and tender offers.

Investopedia explains Williams Act
In the 1960s, a large number of takeovers occurred unannounced. This created difficulties for managers and stockholders who were forced to make crucial decisions with very little preparation.

The Williams Act was created in order to protect investors from these occurrences. The bidders must include all details of their tender offer in their filing to the SEC and the target company. Their file must include the terms, cash source, their plans for the company after takeover, etc. There are also time constraints that stipulate the minimum period of time the offer may be open and the number of days after the offering in which shareholders have the right to change their minds.