Tender offers
A tender offer is a type of transaction in which a company or third-party makes an offer to purchase a significant portion of a company's outstanding shares from its shareholders.
Tender offers are usually made at a premium to the current market price, meaning that shareholders are able to sell their shares back to the company at a higher price than what they would receive in the open market. Shareholders have the option to accept or reject the offer.
A voluntary tender offer is an offer made by a company or an outside party to purchase a significant portion of the company's outstanding shares from its shareholders at a premium to the current market price. The shareholders have the option to accept or reject the offer.
An involuntary tender offer is an offer made by an outside party without the approval of the company's management. This type of offer is usually made by an activist investor, another company, or a group of investors with the intention of gaining control of the target company, or to force a change in the company management or strategy.
Updated about 1 year ago