Series 79: Chapter 13

Chapter 13

Tender Offer Regulations

The term “tender offer” suggests a proposal communicated with whispered sweet nothings. In the M&A world, however, tender offer has a very different meaning (unless you have an unusually intimate relationship with the target company). In this context, a tender offer is simply an open solicitation to purchase a significant percentage of a company’s outstanding shares from existing shareholders.

A tender offer may come from an issuer that wishes to repurchase some or all of its shares, or the offer may come from a third party, which may be an individual, a corporation, or a consortium. While a tender offer may be for less than a majority of shares, in the case of outsiders the intent is typically to acquire the target company, or a