ARSENAL > Tender offer

Tender offer

Markets
Definition
A public offer to buy shares from existing shareholders at a specified price, typically at a premium to market. Used in M&A (acquirer offers to buy out target) and buybacks (company offers to repurchase its own shares).

Subject to SEC rules including minimum offer period (20 business days) and best-price provisions. Hostile tender offers go directly to shareholders, bypassing target management.
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