In financial terms what is a Tender Offer?

Answer 1

Tender offer is a corporate finance term that typically refers to a public, open offer (usually announced in a newspaper advertisement) by an entity to all stockholders of a publicly traded corporation to tender their stock for sale at a specified price for a specified time, subject to the tendering of a minimum and maximum number of shares. In the United States, tender offers are regulated by the Williams Act.

To induce the shareholders of the target company to sell, the acquiror's offer price usually includes a premium over the current market price of the target company's shares. For example, if a target corporation's stock were trading at a value of $1/share, an acquiror might offer $1.15/share to its shareholders on the condition that 51% of shareholders agree. Cash or other securities may be offered to the target company's shareholders as consideration, although a tender offer in which securities are offered as consideration is generally referred to as an "exchange offer."-

Answer 2

tender offer -- a public offer to buy shares of stock from existing stockholders of one public corporation by another company or other organization under specified terms good for a stated time period. The offer is for stockholders to "tender" (surrender) their holdings for a stated price, usually at a premium above the current market price. The offer is made subject to the buyer being able to obtain at least a minimum number and no more than a maximum number of shares.

Answer 3

Well, lets say if your local Council wanted work doing they would invite Contractors to offer Tenders. Tenders are price quotes for doing a job of work. When the Council receive all the Tenders then they will choose the Contractor with the lowest Tender (price quote) for the job. OK?

Answer 4

an offer for stock you hold long. They are wanting to buy your shares and many more.