Tracking Alpha
What it is
A deal in which the buyer offers to buy the shares directly from holders, who choose whether to tender; a merger usually follows for the shares not tendered.
On the site asTender offerCash, tender offer
How to read it
The Structure column's Tender offer tag, the checklist's Structure line, and Cash, tender offer on the deal page's top line. Holders approve by tendering, so the minimum tender takes the vote's place. Holders who don't tender usually receive the same cash in the merger that follows.
With no proxy statement or meeting to wait for, a tender offer can close sooner than a merger vote.
Related terms
- Merger voteA deal the target's holders approve, at a meeting or by written consent, after which their shares are converted into the cash price, except shares rolled into the buyer and shares whose holders demand appraisal.
- Minimum tender conditionIn a tender offer, the share of the outstanding shares that must be validly tendered, often counted together with shares the buyer already owns, before the buyer has to buy any.
- Tender offer expiryThe day the tender offer is scheduled to expire, as most recently extended. Holders who want the offer price tender before it.
