Series 79: Position Of Subject Company With Respect To A Tender Offer (Rule 14e-2)

Position of Subject Company with Respect to a Tender Offer (Rule 14e-2)

Whenever a company is the subject of a tender offer, Rule 14e-2 requires that the target company communicate management’s position on the offer to the shareholders within 10 business days from the date of the offer. The communication must state that management (1) recommends acceptance or rejection of the offer, (2) remains neutral, or (3) takes no position on the tender offer. The communication should also explain the reasons underlying the recommen