Why would I want to accept a tender offer from a stock company?

I received a tender offer from a company that bought into another company. They are going public with the new company soon.

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July 2016
75% of people found this answer helpful

Great question. Here is a link to a description of a tender offer for those who may not be familiar with the details.

The answer to your question lies in what you currently own and the company offering the tender offer is as well as the price of the offer. If you feel the company you currently own is a better investment than the tender offer company, then you may not want to accept the offer.

If you feel the tendering company may be a good investment, then you may want to accept the offer. If you accept the tender, you will end up holding the new company asset. You should also attempt to determine if the offering price is at a level you feel is good for your situation.