A public offer to purchase shares of a company directly from shareholders at a specified price, typically above current market value, for a limited time period. Tender offers are commonly used in takeover attempts and must comply with federal securities regulations requiring disclosure and fairness.
From 'tender' meaning 'to offer formally' (from Latin 'tendere' to stretch out) and 'offer.' The term gained prominence in 1960s American securities law as hostile takeovers became more common, requiring regulatory frameworks to protect shareholders from coercive or unfair acquisition tactics.
Tender offers are like corporate courtship—instead of asking the company's management for permission to buy the business, the acquirer goes directly to shareholders with a tempting offer! It's often used to bypass hostile management, creating bidding wars that can drive up prices dramatically.
Complete word intelligence in one call. Free tier — 50 lookups/day.