tender offer

noun

|Updated on: 19 Jun 2018

Definition of tender offer

: a public offer to buy not less than a specified number of shares of a stock at a fixed price from stockholders usually in an attempt to gain control of the issuing company

See tender offer defined for English-language learners

Recent Examples of tender offer from the Web

Upon completion of the tender offer and the stock sales, Altaba expects to own a roughly 11% stake in Alibaba.

— colin kellaher, WSJ, "Altaba Looks to Buy Back 24% of Shares in Exchange for Alibaba Stock," 7 June 2018
That is more than the $48 billion valuation SoftBank Group and a consortium of investors placed on the company in a tender offer earlier this year.

— daisuke wakabayashi, New York Times, "Uber Finds Profits in Leaving Tough Overseas Markets," 23 May 2018
Ryan Pace has drawn criticism for not using the second-round contract tender offer for Cameron Meredith, which would’ve landed the Bears a second-round draft pick if another team had signed the wide receiver.

— steve rosenbloom, chicagotribune.com, "We have met the enemy, and it is the Cubs' starting rotation," 16 Apr. 2018
Young, Isaac Asiata, a 2017 fifth-round pick, and center Jake Brendel, who a restricted free agent who received a tender offer, serve as the primary backups on the offensive line.

— omar kelly, Sun-Sentinel.com, "Miami Dolphins re-sign veteran offensive tackle Sam Young," 23 Mar. 2018
Snead received a low tender offer from the Saints at the start of free agency.

— amos morale iii, NOLA.com, "Willie Snead to visit Baltimore Ravens: report," 21 Mar. 2018
On Friday, Qualcomm extended its NXP tender offer to April 20.

— mike freeman, sandiegouniontribune.com, "Qualcomm may seek to extend timetable on NXP deal amid China trade tensions," 13 Apr. 2018
Alexion and Wilson said Wednesday that investors owning 73 percent of Wilson’s shares have expressed support for the takeover, which is being structured as a tender offer.

— adam feuerstein, STAT, "Alexion buying Swedish biotech for $855 million to broaden rare disease pipeline," 11 Apr. 2018
After Elliott disclosed its stakes, KKR twice increased the price of a tender offer for the company and finally succeeded in acquiring it in December.

— julie steinberg, WSJ, "Elliott Management Reveals Over $1 Billion Stake in Hyundai, Seeks Clearer Road Map," 4 Apr. 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'tender offer.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of tender offer

1967

in the meaning defined above

See Words from the same year

NEW! Time Traveler

Financial Definition of TENDER OFFER

tender offer

noun

What It Is

A tender offer is a proposal by an investor to all current shareholders of a publicly traded corporation to tender their shares for sale at a certain price at a certain time.

How It Works

The prospective acquirer typically offers a higher price per share than the corporation's stock price. This provides shareholders with a greater incentive to unload their shares. For example, if a stock's current price is $10/share, someone wishing to take over the company might issue a tender offer for $12/share on the condition that he can acquire at least 51% of the shares.

Why It Matters

Tender offers can be executed without the consent of the company's board of directors. The potential acquirer can work directly with shareholders to takeover the company. Sometimes this is referred to as a "hostile takeover."

Source: Investing Answers

TENDER OFFER Defined for English Language Learners

tender offer

noun

Definition of tender offer for English Language Learners

business : an offer to buy a certain number of stock shares of a company for a set price in order to gain control of the company

Law Dictionary

tender offer

noun

legal Definition of tender offer

: a public offer to purchase a specified number or range of shares from shareholders usually at a premium and in an attempt to gain control of the issuing company