Definition
A tender offer is a public proposal to acquire some or all shareholders' shares at a specified price, usually at a premium to the current market price. Tender offers can be made by the company itself (share buyback) or by an outside party seeking to acquire the company. Shareholders choose whether to 'tender' their shares. Tender offers have strict SEC regulations including disclosure requirements and minimum open periods. They're often used in hostile takeovers when target management won't negotiate.
Formula
Example
An acquiring company announces a tender offer for target company shares at $50 per share, a 25% premium over the $40 current price. Shareholders have 20 business days to decide whether to tender their shares.
FAQ
What is Tender Offer?
A public offer to buy shares directly from shareholders at a specified price.
How do you calculate Tender Offer?
A common formula for Tender Offer is: 要约溢价 = (要约价格 - 市场价格) / 市场价格 x 100
Why is Tender Offer important?
Tender Offer helps investors evaluate corporate actions and make more informed decisions.