When a corporation or other investor offers to buy a large portion of outstanding shares of another company, called the target company, at a price higher than the market price, it is called a tender offer.
A mini-tender is never labeled as a "mini-tender. In corporate finance, a tender offer is often called a takeover bid as the investor seeks to take over control of the corporation. DictionaryThesaurusLegalWikipedia.
Tips for Investors Jan. For further reading, see Policing The Securities Market: For limited partnerships, contact the general partner to get Tender offer list of firms that buy and sell the limited partnership, or ask your broker or investment adviser.
For bonds and limited partnerships, you may need to talk with your broker or investment adviser because these prices may be hard to find. Bidders in mini-tender offers sometimes fail to provide prompt payment, sometimes delaying for weeks or months.
In addition, the bidder can extend the tender offer without giving you the right to withdraw your shares.
Eventually, the stock may become so illiquid that you could end up taking any offer at all to sell your stock after fighting to receive a higher price when the tender offer was made. Securities and Exchange Commission. For example, if the government rejects a proposed acquisition citing anti-trust violations, the acquirer can refuse to buy tendered shares.
As the closing date nears and issues are resolved, the spread typically narrows. However, the bidder must purchase the shares according to the terms of the offer regardless of whether market price has risen, so the bidder may end up losing that gamble.
Current stockholders, individually or as a group, can accept or reject the offer. Many investors who hear about mini-tender offers surrender their securities without investigating the offer, assuming that the price offered includes the premium usually present in larger, traditional tender offers.
Of course, the financial burden of bringing a challenge to court rests on the dissenting shareholder. It can be a time-consuming process as depository banks verify tendered shares and issue payments on behalf of the investor.
But none of the rules listed above applies to mini-tender offers.ten·der 1 (tĕn′dər) adj.
ten·der·er, ten·der·est 1. a. Easily crushed or bruised; fragile: a tender petal. b. Easily chewed or cut: tender beef. 2. Young and. Tender Offer. A proposal to buy shares of stock from the stockholders of a corporation, made by a group or company that desires to obtain control of.
Altaba Inc. (“Altaba” or the “Fund”) (NASDAQ: AABA) announced today the commencement of a tender offer to purchase up to , issued and outsta. A mini-tender offer is an offer to acquire a company's shares directly from current investors in an amount less than 5% of issued stock. 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 killarney10mile.com 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.
The second-round tender offers a $ million salary for and would cost another team a second-round pick. — josh katzenstein, killarney10mile.com, "Saints offer restricted free agent Willie Snead low tender: report," 13 Mar.Download