Tender Offer

Business, Legal & Accounting Glossary

Definition: Tender Offer

Full Definition of Tender Offer

Tender offer is a term typically used in corporate finance to mean a public, open offer by an entity to buy stock from the existing stockholders of a publicly traded corporation under specific terms in effect for a specific period. In the United States, tender offers are regulated by the Williams Act.

In a tender offer, the stockholders of the targeted company are asked to tender or surrender their stock holdings for a stated value (usually higher than the current market price or at premium) subject to the tendering of a minimum and maximum number of shares. For instance, if a corporation’s stock were trading at a value of $1/share, an acquirer might offer $1.15/share to its shareholders on the condition that 51% of shareholders agree.

Cite Term

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Page URL
Modern Language Association (MLA):
Tender Offer. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 28, 2021 https://payrollheaven.com/define/tender-offer/.
Chicago Manual of Style (CMS):
Tender Offer. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/tender-offer/ (accessed: September 28, 2021).
American Psychological Association (APA):
Tender Offer. PayrollHeaven.com. Retrieved September 28, 2021, from PayrollHeaven.com website: https://payrollheaven.com/define/tender-offer/

Definition Sources

Definitions for Tender Offer are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 13th February, 2020 | 2 Views.