Tender-offer

/ˈtɛndər ˌɔfər/ noun

Definition

A public offer to purchase shares directly from shareholders at a specified price, usually above the current market price, for a limited time period. Tender offers are commonly used in takeover attempts or share buyback programs.

Etymology

From 'tender' (from Latin tendere, meaning to stretch out or offer) and 'offer' (from Latin offerre, meaning to present). Legal term that became prominent in corporate finance during the merger wave of the 1960s and 1970s.

Kelly Says

Tender offers are like a corporate courtship - the acquirer makes a public proposal directly to shareholders, often going around hostile management, and shareholders get to decide whether to 'tender' their shares like accepting a marriage proposal!

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