Tender Offers

A tender offer is a public proposal made by an individual or company to purchase some or all of shareholders' shares at a specified price, usually at a premium to the current market value. This process is often used in mergers and acquisitions to gain control of a target company. Shareholders can choose to accept or reject the offer. If enough shares are tendered, the buyer can gain majority ownership. Tender offers can be friendly or hostile, depending on whether the target company's management supports or opposes the acquisition.