A comprehensive resource for investors and financial professionals on tender offers, their implications, and strategic considerations in corporate finance.
A tender offer represents a public solicitation to all shareholders to tender their shares for sale at a specified price during a fixed period. This method is commonly used in corporate acquisitions, providing a direct route to gain control of a target company.
Shareholders receive cash payment for their shares at a fixed price, typically at a premium to the current market price.
Shareholders receive securities (stocks, bonds, or other instruments) of the acquiring company in exchange for their shares.
A two-phase acquisition where the first tier offers better terms than the second tier to encourage quick acceptance.
Company files Schedule TO with SEC, declaring intention to purchase shares.
Typically 20 business days where shareholders can tender their shares.
Usually 20-30% above current market price based on various factors.
SEC and antitrust authorities review the proposed transaction.
Offer concludes if minimum shares are tendered, or extends if necessary.
If you choose not to tender your shares during the offer period, the outcome depends on the offer's success. If the acquirer gains control, remaining shareholders might be forced to sell in a subsequent merger, potentially at less favorable terms.
The initial tender offer period must remain open for at least 20 business days. Extensions are common if the minimum share threshold isn't met or regulatory approvals are pending.
Yes, tender offers can be withdrawn under certain circumstances, such as failure to obtain regulatory approval or if conditions specified in the offer aren't met.
Official SEC documentation on tender offer rules and regulations.
View GuidelinesComprehensive database of past tender offers and their outcomes.
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