![]() Shareholders then have the option to accept or reject the tender offer. The tender offer is typically made in the form of a written document, sent to the company’s shareholders. If enough shares are tendered, the acquirer will gain control of the company. The offer is typically only open for a limited time, typically 30-60 days. Tender offers may be made by the company itself to buy back its outstanding shares, or the buyer may also be private equity firms, hedge funds, and other companies. A tender offer is usually done for a hostile takeover of the intended company. The share is being bought at a premium price, usually at a premium to the current market price. Definition of a tender offerĪ tender offer is a public invitation to shareholders of a publicly traded company to buy all or a portion of their shares for a specified price at a certain time. Tender offers can also be used to acquire assets and strengthen an existing corporate stake. This type of transaction is typically used to increase the company’s ownership or control over a certain portion of its stock. A tender offer is a corporate action in which a company makes a public offer to buy a certain amount of shares of its own stock at a specific price. ![]()
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