Finance glossary
Tender Offer
Definition
A public bid to buy shareholders shares at a set price.
A tender offer is a proposal made directly to shareholders to buy their shares, usually at a premium, to gain control of a company. It can bypass uncooperative management and is a common tactic in both friendly deals and hostile takeovers.
In a sentence
The bidder launched a tender offer, asking shareholders to sell their shares at a 30% premium.
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