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
First Known Use of tender offer
Financial Definition of TENDER OFFER
What It Is
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.
TENDER OFFER Defined for English Language Learners
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
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
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