tender offer

A broad solicitation to buy shares of a company, issued by the company itself or by a third party. A traditional tender offer proposes acquiring a substantial percentage of a company’s securities for a limited time. These offers must include an expiration date. It is typical for the offer to be priced at a premium above the current market price. Tender offers are customarily contingent on a specific number of shares being surrendered by shareholders. SEC filing requirements are triggered whenever a tender offer will result in the acquiring party holding more than 5% of a class of a company’s securities. A mini-tender offer is a proposal to acquire less than 5% of a company’s outstanding shares.