tender offer
tender offer n: a public offer to purchase a specified number or range of shares from shareholders usu. at a premium and in an attempt to gain control of the issuing company

Merriam-Webster’s Dictionary of Law. . 1996.

tender offer
n.
An offer to purchase shares of stock, often above market price, in a company made by a person or business that wished to acquire control of the company.

The Essential Law Dictionary. — Sphinx Publishing, An imprint of Sourcebooks, Inc. . 2008.


tender offer
A public offer to purchase stock at a specified price per share, usually done to gain a controlling interest in a corporation.
Category: Business, LLCs & Corporations → LLCs, Corporations, Partnerships, etc.

Nolo’s Plain-English Law Dictionary. . 2009.

tender offer
In the context of a buyback of shares, where the shareholders are invited to sell their shares or "tender" them to the company at either a fixed price or at a maximum price. In a fixed price tender, shareholders are offered the opportunity to sell some or all of their shares in a company at a fixed price. In a maximum price tender offer, shareholders are invited to tender their shares at a price within a range of prices set by the company. The company sets the maximum aggregate amount that it is prepared to pay to shareholders. The eventual price at which the shares are purchased, the "strike price", is calculated so as to permit the company to purchase the maximum number of shares within the maximum aggregate value.
+ tender offer
USA
A tender offer is one method of acquiring the stock of a public company. Although not defined in the SEC's rules and regulations, it is widely understood that a "tender offer" is an offer to purchase some or all of a corporation's publicly traded stock directly from the company's stockholders with cash, the bidder's stock (known as an exchange offer) or a combination of cash and stock. By making a direct solicitation to a target company's stockholders to acquire their interests, a bidder can take a controlling position in a company if the majority of stockholders agree to sell their stock, whether or not the target company's board recommends the acquisition.
Because it is highly improbable that all of a target company's stockholders will tender all of their stock to a bidder, a merger is necessary as a second step (known as a two-step merger) to complete the acquisition of 100% of the target company. The two-step merger can be completed as a:
back-end merger (a merger requiring the target company's stockholder approval).
short-form merger (a merger not requiring stockholder approval, usually if the bidder owns at least 90% of the target company's stock).
Third party tender offers are used to acquire companies in "friendly" (negotiated) deals and less commonly, in hostile acquisitions. A company can also launch an issuer tender offer (also known as a self tender) to buy back its own stock to meet certain business objectives or as a defensive measure against a takeover.
For more information on tender offers see Practice Notes, Tender Offers: Overview (www.practicallaw.com/1-382-7403) and What's Market: Tender Offers (www.practicallaw.com/5-386-4021).
Related links

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.


tender offer
n. A corporate law offer to buy all shares of a corporation's stock up to a certain number by shareholders at a fixed price (usually higher than market value) within a certain period of time. Tender offers are usually precursors to corporate takeover moves. The Williams Act of 1968 was passed by Congress to regulate tender offers so that shareholders can make an informed decision about whether or not to tender their shares for sale.

Webster's New World Law Dictionary. . 2000.


tender offer
A proposal to buy shares of stock from the stockholders of a corporation, made by a group or company that desires to obtain control of the corporation.

Dictionary from West's Encyclopedia of American Law. 2005.


tender offer
A proposal to buy shares of stock from the stockholders of a corporation, made by a group or company that desires to obtain control of the corporation.

Short Dictionary of (mostly American) Legal Terms and Abbreviations.

Look at other dictionaries:

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  • tender offer — n. a public offer to purchase a block of stock in a corporation, often the controlling interest, within a specified period and at a stipulated price, usually well above the existing market price …   English World dictionary

  • tender offer — General offer made publicly and directly to a firm s shareholders to buy their stock at a price well above the current value market price. Bloomberg Financial Dictionary A means of implementing an offer for subscription or offer for sale. The… …   Financial and business terms

  • Tender offer — General offer made publicly and directly to a firm s shareholders to buy their stock at a price well above the current market price. The New York Times Financial Glossary * * * tender offer tender offer ➔ offer2 * * *    A company making a tender …   Financial and business terms

  • tender offer — noun an offer to buy shares in a corporation (usually above the market price) for cash or securities or both • Hypernyms: ↑offer, ↑offering • Hyponyms: ↑takeover bid * * * a public offer to purchase stock of a corporation from its shareholders at …   Useful english dictionary

  • tender offer — 1) An offer by one company to buy the shares of another from the shareholders at a stated price (usually at a premium above the market price). It is normally made as part of a takeover bid See also self tender; two tier tender offer 2) See issue… …   Big dictionary of business and management

  • tender offer — acquisition offer / take over offer / purchase offer / buyback offer An offer made to shareholders, normally by a third party, requesting them to sell (tender) or exchange their equities …   Euroclear glossary

  • 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. Tender offers may be friendly or unfriendly. Securities and Exchange Commission laws require any corporation… …   Investment dictionary

  • tender offer — noun Date: 1967 a public offer to buy not less than a specified number of shares of a stock at a fixed price from stockholders usually in an attempt to gain control of the issuing company …   New Collegiate Dictionary

  • tender offer — a public offer to purchase stock of a corporation from its shareholders at a certain price within a stated time limit, often in an effort to win control of the company. [1960 65] * * * …   Universalium

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