Series 79: Prohibited Transactions In Connection With Partial Tender Offers (Rule 14e-4)

Prohibited Transactions in Connection with Partial Tender Offers (Rule 14e-4)

A partial tender offer (a tender offer for less than 100% of outstanding shares) creates the possibility that shareholders may tender more total shares than the offeror wants to purchase. Offerors often respond by purchasing shares on a pro rata basis. If 200,000 shares are tendered on an offering of 100,000 shares, the offeror will purchase 50% of tendered shares from each tenderer.

The SEC prohibits two of the most common tact