Definition of Tender Offer

Tender offer is an offer to buy all or part of a company’s outstanding securities for cash or cash and securities.

Applying "Tender Offer" to Securities Exams:

If a corporation or private equity firm wants to acquire a publicly traded company they may do so by submitting a tender offer to the shareholders. A tender offer must remain open for a minimum of 20 days from the date it is first announced. Sometimes a corporation will submit a tender offer for its own bonds in an effort to pay down its debt.

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